The Producer Surplus of Making and Selling 10 Chairs Is

question 331

Multiple Choice

The producer surplus of making and selling 10 chairs is found by

• A) multiplying the selling price by 10.
• B) subtracting the marginal cost from the selling price for each chair and summing the differences for all 10 chairs.
• C) subtracting from the total revenue the cost of producing one chair multiplied by 10.
• D) adding the marginal cost and the price of all 10 chairs.
• E) None of the above answers is correct.

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Definitions:

S And D Curves

Graphical representations of the relationship between quantities supplied and demanded at various prices.

Total Revenue

The total income a firm receives from the sale of its goods or services, calculated by multiplying the price by the quantity sold.

Unit Price

The cost per unit of a product or service, making it easier to compare the prices of different sizes or quantities.