In the Short Run,if a Firm Operates,it Earns a Profit

question 97

Multiple Choice

In the short run,if a firm operates,it earns a profit of $500.The fixed costs of the firm are $100.This firm has a producer surplus of

• A) $500.
• B) $100.
• C) $400.
• D) $600.

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Definitions:

Indifference

A state where a consumer has no preference between two or more choices.

Utility

An economic term referring to the total satisfaction received from consuming a good or service.

Indifference Curve

A graphical representation showing different combinations of goods or services among which a consumer is indifferent, implying no preference for one combination over another, given their utility or satisfaction remains constant.

Preferred

Refers to something that is more desirable or favored over other options.