Paper Clip Company Sells Office Supplies

question 174

Multiple Choice

Paper Clip Company sells office supplies. The following information summarizes the company's operating activities for the year: What is gross profit?

• A)$70,700
• B)$41,200
• C)$85,500
• D)$58,000

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service supplied matches the quantity demanded, resulting in market stability.

Output

The total amount of goods or services produced by a business, industry, or economy.

Economic Efficiency

A situation where resources are utilized in the most optimal manner, producing the desired output with minimum waste or expense.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive.