Which area in the above figure shows the producer surplus at the price and quantity that would be attained if the industry were perfectly competitive?
A) A + B + C + D + E
B) C + D + E + F + G + H
C) F + G + H
D) F + G + H + I + J + K
C
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Frequently, a public good can be adequately provided by private action when its benefits are
a. concentrated among a small number of people. b. equally valued by everyone. c. widespread. d. greater than its costs.
Suppose that the demand for oranges increases. Explain the long-run effects of the guiding function of price in this scenario
What will be an ideal response?
What is net marginal revenue?
A) The same as marginal profit. B) The additional revenue the firm earns from an extra unit of an internally produced intermediate input. C) The additional revenue the firm earns from producing one more unit of output. D) The additional revenue the firm earns from selling one more unit of output.
Economists assume that, in general, when individuals are faced with two choices that have the same expected value, they will prefer:
A. the one with lower risk. B. the one with higher risk. C. the one with the higher opportunity cost. D. the one with the lower future value.