(Figure: Consumer Surplus) Refer to the Figure

question 106

Multiple Choice

(Figure: Consumer Surplus) Refer to the figure. Calculate the dollar amount of consumer surplus being earned in this market.

• A) $4,500
• B) $9,000
• C) $18,000
• D) $450

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Definitions:

Factor Price

The price paid for the use of a factor of production, such as labor, land, or capital, in the production of goods and services.

Marginal Cost

Marginal cost refers to the increase in total cost resulting from producing one additional unit of a good or service.

Total Revenues

The overall amount of income generated from the sale of goods or services before any expenses are subtracted.

Total Costs

The sum of all expenses (fixed and variable) incurred in the production of goods or services.