Figure 8-9 the Vertical Distance Between Points a and C Represents a Represents

question 51

Multiple Choice

Figure 8-9
The vertical distance between points A and C represents a tax in the market.
-Refer to Figure 8-9.The producer surplus without the tax is

• A)$3,000.
• B)$8,000.
• C)$12,000.
• D)$24,000.

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Definitions:

Capital Asset Pricing Model

A model that describes the relationship between systematic risk and expected return for assets, particularly stocks; it is used to determine a theoretically appropriate required rate of return of an asset.

Specific Risk

Risk associated with individual investments or a small group of assets, distinct from market risk.

Two-factor Model

A Two-factor Model in finance is an asset pricing model that uses two variables to calculate the value of an asset or the expected return.

Commodity Prices

The market prices for raw materials or primary agricultural products.