Figure 7-16 -Refer to Figure 7-16.Suppose the Price of the Good Is

question 75

Multiple Choice

Figure 7-16
-Refer to Figure 7-16.Suppose the price of the good is $450.Then,on the first unit of the good that is sold,producer surplus is

• A)$250,and on the second unit of the good that is sold,producer surplus is $100.
• B)$250,and on the second unit of the good that is sold,producer surplus is $150.
• C)$350,and on the second unit of the good that is sold,producer surplus is $100.
• D)$350,and on the second unit of the good that is sold,producer surplus is $150.

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Definitions:

Par Value

The nominal or face value of a bond, stock, or coupon as stated by the issuer, which often bears no relation to its market value.

Common Stock Dividends Distributable

A liability account that represents dividends declared by a company but not yet distributed to shareholders.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, without changing the shareholders' equity.

Stock Dividend

A distribution of extra shares to shareholders instead of a financial dividend.