Given the Following Data, What Is the Total Relevant Cost

question 151

Multiple Choice

Given the following data, what is the total relevant cost of internal production of 2,000 products?

• A)$34,000
• B)$40,000
• C)$48,000
• D)$49,000

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Definitions:

Equilibrium Price

Equilibrium price is the market price where the quantity of goods supplied is equal to the quantity of goods demanded.

Willingness to Pay

The maximum amount an individual is prepared to spend on a good or service.

Pumpkin Market

A theoretical or real market where pumpkins are bought and sold, often used to illustrate principles of supply and demand or seasonal markets.

Consumer Surplus

The gap between what consumers are ready to pay in total and what they end up actually paying.