The Stealth Company Reports the Following Information for the Start

question 47

Multiple Choice

The Stealth Company reports the following information for the start of this year: Assume that owners invested $3000 during this year and that withdrawals were $12 000. Net profit for the year must have been:

• A) $12 000
• B) $14 000
• C) $16 000
• D) $17 000

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Definitions:

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service versus the total amount they actually pay.

Marginal Cost

The expenditure required to create one more unit of a product.

Producer Surplus

The difference between the amount that producers are willing and able to sell a product for and the actual amount they do sell it for.