Use the Following to Answer Questions 44-45

question 52

Multiple Choice

Use the following to answer questions 44-45:
Figure 10.9
-(Figure 10.9) This firm is using block pricing, charging $35 each for the first 5 units, $25 each for units 6 and 7, and $15 for each unit beyond 7. What is the firm's producer surplus?

• A) $80
• B) $140
• C) $100
• D) $165

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Definitions:

Goods

Tangible products or items that are produced or manufactured for sale and consumption.

Robinson-Patman Act

A United States federal law that aims to prevent anticompetitive practices by producers, specifically price discrimination.

Price Differentials

The variation in price levels between different geographic areas, markets, or products due to various factors like competition, demand, and cost of living.

Cost of Manufacture

The total expenses incurred in producing a product, including materials, labor, and overhead costs.