Refer to the Graph Shown

question 78

Multiple Choice

Refer to the graph shown. If the seller expects a price of $52, the minimum amount the firm must produce to be profitable is:

• A)15.
• B)16.
• C)17.
• D)18.

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Definitions:

Opportunity Cost

Opportunity cost is the loss of potential gain from other alternatives when one alternative is chosen.

Consumer Surplus

The separation between the total amount consumers are equipped and willing to pay for a good or service and what is effectively paid.

Total Surplus

The sum of consumer and producer surplus, reflecting the total benefit to society from the production and consumption of goods and services.

Consumer Surplus

The split between the maximum total consumers are prepared to pay for a product or service and the actual payment.