Producer surplus is the
A. area under the supply curve to the left of the amount sold
B. area under the supply curve to the right of the amount sold
C. amount the seller is paid plus the cost of production
D. amount the seller is paid less the cost of production
E. cost to sellers of participating in a market
D. amount the seller is paid less the cost of production
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The table above gives data for the nation of Pearl, a small island in the South Pacific. The economy is at full employment when real GDP is
A) $31 billion. B) $34 billion. C) $28 billion. D) $22 billion. E) $25 billion.
Which region has the highest proportion of its children working?
What will be an ideal response?
An effective price ceiling occurs when
A) the government sets a maximum price for a good above the equilibrium price. B) the government sets a minimum price for a good above the equilibrium price. C) the government sets a minimum price for a good below the equilibrium price. D) the government sets a maximum price for a good below the equilibrium price.
If General Electric finds that when it doubles both its plant size and the amount of associated inputs, its output level does not double, then
a. the law of diminishing returns is in effect. b. long-run average costs must be decreasing. c. the firm is experiencing diseconomies of scale. d. the firm should increase production. e. the firm is experiencing constant returns to scale.