Bill Created a New Software Program He Is Willing to Sell

question 70

Multiple Choice

Bill created a new software program he is willing to sell for $300.He sells his first copy and enjoys a producer surplus of $250.What is the price paid for the software?

• A)$50.
• B)$250.
• C)$300.
• D)$550.

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Definitions:

Variable Cost

Costs that vary directly with the level of production or with the volume of output.

Fixed Cost

Expenses that do not change with the level of production or sales volume, such as rent, salaries, and insurance premiums.

Contribution Margin Technique

A method used to evaluate how sales affect net income or profits, calculated as sales revenue minus variable costs.

Net Income (Loss)

The total profit or loss a company generates in a specific period after all expenses, taxes, and costs have been deducted from total revenue.