Use the Following to Answer Questions

question 191

Multiple Choice

Use the following to answer questions :
Figure: The Market for Hamburgers
-(Figure: The Market for Hamburgers) The figure The Market for Hamburgers shows the weekly market for hamburgers in Montreal,Quebec.If the price of a hamburger is $1 and 200 hamburgers are supplied,producer surplus will equal:

• A) $60.
• B) $65.
• C) $50.
• D) $360.

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Definitions:

Net Realizable Value

The estimated selling price of an item in the ordinary course of business minus any costs associated with the sale or disposal of the item.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of a company's accounts receivable that may not be collectible.

Gross Accounts Receivable

The total amount owed by customers to a business for goods or services provided without deducting any allowance for doubtful accounts.

Contra-Revenue Account

An account that decreases the gross amount of revenue reported on the financial statements, such as sales returns, discounts, and allowances.