The Figure Below Shows the Marginal Cost (Circles) and the Average

question 45

Multiple Choice

The figure below shows the marginal cost (circles) and the average variable cost (crosses) of a firm in a competitive market. The firm always makes the choice to maximize its profit.

-Refer to the figure above.If the market price of the product is $3,400,what is the firm's producer surplus?

• A) $5,700
• B) $3,250
• C) $1,700
• D) $880

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