Figure 7-16 -Refer to Figure 7-16.If the Price of the Good Is

question 3

Multiple Choice

Figure 7-16
-Refer to Figure 7-16.If the price of the good is $600,then

• A)consumer surplus is $800.
• B)consumer surplus is $900.
• C)producer surplus is $900.
• D)producer surplus is $1,000.

---

Definitions:

Total Manufacturing Costs

The aggregate cost of direct materials, direct labor, and manufacturing overhead incurred in the production of goods.

Work in Process Inventory

The stock of partially finished goods still undergoing manufacturing processes.

Cost of Goods Manufactured

Total cost incurred by a company to produce goods during a specific period, including materials, labor, and overhead.

Manufacturing Process

A series of steps involved in the production of goods, typically involving raw materials, machinery, and labor to create finished products.