Find the Producer's Surplus for a Product with Demand Function

question 94

Multiple Choice

Find the producer's surplus for a product with demand function and supply function where p is in millions of dollars and x is the number of thousands of units. Round your answer to one decimal place. ​

• A) 37.5 million dollars
• B) 26.5 million dollars
• C) 21.0 million dollars
• D) 22.5 million dollars
• E) 23.5 million dollars

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Definitions:

Cash Inflow

The total amount of money being transferred into a business, typically from operations, financing, and investing activities.

Initial Investment

The initial amount of money spent to start a business venture or project, including costs for assets, resources, and initial operating expenses.

Internal Rate of Return

A metric used in financial analysis to estimate the profitability of potential investments, representing the discount rate that makes the net present value of all cash flows from a particular project equal to zero.

Estimated Savings

Projected reductions in costs resulting from efficiency measures, budget adjustments, or the implementation of strategic plans.