Figure 9-11 -Refer to Figure 9-11.The Change in Total Surplus in This

question 286

Multiple Choice

Figure 9-11
-Refer to Figure 9-11.The change in total surplus in this market because of trade is

• A)A,and this area represents a loss of total surplus.
• B)B,and this area represents a gain in total surplus.
• C)C,and this area represents a loss of total surplus.
• D)D,and this area represents a gain in total surplus.

---

Definitions:

Cost of Goods Manufactured

The total expense incurred in manufacturing goods, including materials, labor, and overhead costs, within a specific period.

Income Statement

A financial statement showing the company's revenues and expenses over a specific period, leading to net profit or loss for that period.

Indirect Labor

Labor costs associated with employees who do not directly work on a product but support the production process.

Factory Overhead

Indirect manufacturing costs that are not directly tied to the production of goods, such as maintenance, utilities, and salaries for management.