Suppose You Are an Analyst for the Coca-Cola Company

question 52

Multiple Choice

Suppose you are an analyst for the Coca-Cola Company.An individual's inverse demand for Coca-Cola is estimated to be P = 98 − 4Q (in cents) .If Coca-Cola is produced according to the cost function C(Q) = 1,000 + 2Q (in cents) ,compute the surplus consumers receive when Coca-Cola charges the optimal block price.

• A) $0
• B) $11.52
• C) $1,152
• D) $576

---

Definitions:

Adjusted Trial Balance

A listing of all company accounts that will appear in the financial statements after adjustments have been made for journal entries.

Current Liability

An obligation due to be paid within a year, including accounts payable, short-term loans, and other similar debts.

Notes Payable

Financial obligations represented by promissory notes, where the borrower agrees to pay back a specified sum of money on demand or at a determined future date.

Prepaid Expenses

Expenses paid in advance by a company for goods or services to be received in the future.