Consider the Following Data: Equilibrium Price = $9,quantity of Output

question 99

Multiple Choice

Consider the following data: equilibrium price = $9,quantity of output produced = 1,000 units,average total cost = $7,and average variable cost $5.Given this,total revenue is __________,total cost is __________,and total fixed cost is __________.

• A) $6,000; $8,000; $1,000
• B) $9,000; $7,000; $5,000
• C) $10,000; $8,000; $3,000
• D) $9,000; $7,000; $2,000
• E) none of the above

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Definitions:

Miguel's Consumer Surplus

The difference between what Miguel is willing to pay for a good or service and what he actually pays, measuring the benefit or surplus value he receives.

Willingness to Pay

The maximum amount a consumer is prepared to spend for a good or service, reflecting the value they place on it.

Demand Curve

A visual diagram depicting how the price of an item correlates with consumer demand for it.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, indicating the benefit to consumers.