Figure 10-12 Figure 10-12 Shows the Cost and Demand Curves for a and Demand

question 265

Multiple Choice

Figure 10-12

Figure 10-12 shows the cost and demand curves for a monopolist.
-Refer to Figure 10-12.Assume the firm maximizes its profits.What is the amount of consumer surplus?

• A)$21
• B)$124
• C)$186
• D)$332

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Definitions:

Cash Discounts

A reduction in the invoice amount by a seller, offered to the buyer in return for early payment of their bill.

Stock Dividends

A form of dividend payment made in the form of additional shares rather than cash, increasing the number of outstanding shares.

Separation Of Duties

A risk management strategy that divides responsibilities within an organization to reduce the risk of fraud or error.

Internal Control System

Procedures and methods to control a firm’s assets as well as monitor its operations.