Consider the Following Supply and Demand Schedules, with P in Dollars

question 59

Multiple Choice

Consider the following supply and demand schedules, with p in dollars and x as the number of units.

Use Simpson's Rule to approximate the producer's surplus at market equilibrium to 2 decimal places. Note that market equilibrium can be found from the tables.
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• A) $6,466.67
• B) $23,333.33
• C) $16,166.67
• D) $26,366.67
• E) $13,133.33

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Definitions:

Contribution Format

An income statement format that separates fixed and variable costs, facilitating analysis of the impact of sales volume on profit.

Unit Contribution Margin

The amount that the sale of one unit contributes toward covering fixed costs and then to profit, calculated as the selling price per unit minus the variable cost per unit.

Contribution Margin Ratio

A financial metric that shows the percentage of sales revenue remaining after variable costs are subtracted, indicating how efficiently a company can produce and sell products.

Break-even Point

A point where total cost and total revenue are equal, indicating no profit or loss and where production or sales start becoming profitable.