Use the Following to Answer Question

question 85

Multiple Choice

Use the following to answer question:
-(Table: Pumpkin Market) There are two consumers,Andy and Ben,in the market for pumpkins.Their willingness to pay for each pumpkin is shown in the table Pumpkin Market.There are two producers of pumpkins,Cindy and Diane,and their costs are also shown.The equilibrium price for pumpkins is $8 and the equilibrium quantity is 5.At the equilibrium price and quantity,total surplus is:

• A)$40.
• B)$36.
• C)$24.
• D)$8.

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Definitions:

Unit Product Cost

The total cost associated with producing one unit of product, encompassing both fixed and variable costs.

Operations

Refers to the day-to-day activities involved in the running of a business for the purpose of producing value for the stakeholders.

Absorption Costing

An evaluation technique that assimilates all production costs, covering direct materials, direct labor, and variable and fixed overheads, into the price of a product.

Net Operating Income

An indicator of a firm's profitability from standard operations, excluding non-operational income and expenses like taxes and interest.