Figure 7-2 -Refer to Figure 7-2.If the Equilibrium Price Rises from $60

question 38

Multiple Choice

Figure 7-2
-Refer to Figure 7-2.If the equilibrium price rises from $60 to $120,what is the producer surplus to new producers in the market?

• A) $1,200
• B) $2,400
• C) $3,600
• D) $4,800

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Definitions:

Management

The process of planning, organizing, leading, and controlling resources within an organization to achieve its goals.

Profits

The financial gains obtained when revenues exceed the costs and expenses incurred in operating a business.

Return on Assets Ratio

A financial metric that measures how profitable a company is in relation to its total assets, indicating how efficient management is at using assets to generate earnings.

Total Assets

The summation of all the company's assets, including those that are tangible and intangible, which are owned and can provide economic value.