-The Figure Shows the Demand for and Costs of Producing

question 281

Multiple Choice

-The figure shows the demand for and costs of producing Charlene's Chocolates. If Charlene's Chocolates is a monopoly and charges one price to all customers, then the consumer surplus is

• A) $400.
• B) $900.
• C) $0.
• D) $200.

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Definitions:

Excludable

A characteristic of a good or service that allows owners or producers to prevent others from using it without permission.

Over Supplied

A market condition where the quantity of a good or service available exceeds the quantity demanded at the current price, often leading to a surplus and typically pressure on prices to decrease.

Marginal Cost

The rise in expenses for producing one more unit of a product or service.

Efficient Amount

The level of production or consumption that maximizes welfare and minimizes waste within an economy, often used in reference to optimal resource allocation.