Use the Following to Answer Questions

question 101

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 burgers falls from $1.50 to $1.00,there is a loss in producer surplus.How much of the loss accrues as a direct result of the hamburgers that are no longer supplied in the market?

• A) $50
• B) $45
• C) $75
• D) $90

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Definitions:

Short Run

A period in economics during which at least one factor of production is fixed, limiting the ability to increase production in response to increased demand.

Profitable

A financial status where the income generated from business activities exceeds the expenses, taxes, and costs associated with maintaining the business.

Marginal Revenue

The additional revenue that a company earns from selling one more unit of a product or service.

Marginal Cost

The rise in expense associated with the production of an extra unit of a product or service.