At the profit-maximizing level of output,producer surplus is ________ and the firm's profits are ________.

Question

Quizplus · Accepted Answer

At the profit-maximizing level of output, producer surplus is the difference between the market price (which is the same as the marginal revenue for a perfectly competitive firm) and the marginal cost of production. The profits earned by the firm are the total revenue earned minus the total cost of production. 
In the given options, only option C has producer surplus of $16,000 and profits of $6,000. Therefore, C is the correct answer.

At the Profit-Maximizing Level of Output,producer Surplus Is ________ and the Firm's