-The Figure Above Shows the Demand for and Costs of Producing

question 342

Multiple Choice

-The figure above shows the demand for and costs of producing Charlene's Chocolates. If Charlene's Chocolates is a monopoly that charges one price to all customers, then consumer surplus is ________ and it creates a deadweight loss of ________.

• A) $800; $400
• B) $200; $100
• C) $400; $200
• D) $0; $200

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Definitions:

Owner's Investment

The total amount of money or assets that an owner puts into his or her business.

Equipment

Physical assets used in the operation of a business to produce goods or services.

Monthly Rent

Regular payment made for the use of property or land, agreed upon on a monthly basis.

Utilities Expense

Utilities expense refers to the cost incurred by businesses or individuals for the usage of basic utilities such as electricity, water, gas, and telecommunication services.