(Table: Barrels of Oil) Refer to the Table

question 94

Multiple Choice

(Table: Barrels of Oil) Refer to the table. What is the total amount of producer surplus (per barrel of oil) earned by all four producers if the market price per barrel of oil is $51? Table: Barrels of Oil Minimum willingness to sell

• A) $65.25
• B) $81.76
• C) $87.75
• D) $93.74

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Definitions:

Variable Costs

Charges that adjust based on the volume of sales or production levels.

Fixed Costs

Expenses that do not change as a function of the activity of a business, within the relevant period.

Break-Even Point

The level of sales at which total revenues equal total costs, resulting in no net loss or gain.

Sales Mix

The composition of a company’s product or service sales, showing the relative proportions of each product or service sold.