A perfectly competitive hardware manufacturer has total revenue of $85 million, total variable costs of $45 million, and fixed costs of $10 million. What is the firm's producer surplus?
A) $85 million
B) $70 million
C) $40 million
D) $30 million
C
You might also like to view...
The demand for labor curve bends backward whenever the income and substitution effects work in opposite directions
a. True b. False
To calculate market demand, we
A. Add the quantities demanded for each individual demand schedule vertically. B. Find the difference between the quantity demanded and the quantity supplied at each price. C. Find the average quantity demanded at each price. D. Add the quantities demanded for each individual demand schedule horizontally.
In 2007 a company sold 35,000 drones at $150 each. In 2008 the same company sold 40,000 drones at $170 each. This information suggests that
A. The supply of drones increased from 2007 to 2008. B. The price of drones increased because the costs of production increased from 2007 to 2008. C. The demand for drones increased from 2007 to 2008. D. From 2007 to 2008, the demand curve for drones was upward-sloping because of improved technology.
The assumptions that form the basis of any economic model are referred to as:
A. theorems. B. objectives. C. building blocks. D. precepts.