Assume the Market Depicted in the Graph Is in Equilibrium

question 34

Multiple Choice

Assume the market depicted in the graph is in equilibrium. Total surplus consists of area(s) :

• A)A + B + C.
• B)B.
• C)A.
• D)A + B.

---

Definitions:

Financial Statements

Documents that report the financial activities and condition of a business or entity, including the balance sheet, income statement, and cash flow statement.

After-Tax Profit Margin

A profitability ratio calculated by dividing net income after taxes by net sales, showing what percentage of sales translates into profits after all expenses.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company in using its assets to generate revenue, calculated by dividing total revenue by average assets.

Total Assets

The sum of all current and non-current assets owned by an entity, reflecting its overall value and financial strength.