Consider a Perfectly Competitive Market with Market Supply $Q ^ { s } = - 2 + P$

question 84

Multiple Choice

Consider a perfectly competitive market with market supply $Q ^ { s } = - 2 + P$ and market demand $Q ^ { d } = 30 - P$ . What is total surplus in this market?

• A) 98
• B) 128
• C) 196
• D) 256

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Definitions:

Movie Studio

A company that funds, produces, and distributes films, often also owning sound stages, equipment and employing staff for the creation of movies and television shows.

Materials Cost Per Unit

The total cost of materials divided by the number of units produced, indicating the material cost for each unit.

Average Cost Method

An inventory valuation method that calculates the cost of goods sold and ending inventory based on the average cost of all similar items in inventory.

Direct Materials

Direct inputs in product manufacturing that can be easily identified and represent a considerable part of the production expenses.