According to the graph shown, producer surplus is:
A. $10.
B. $2.
C. $20.
D. $6.
Answer: A
You might also like to view...
The major criticism of the view that expectations are formed adaptively is that
A) this view ignores that people use more information than just past data to form their expectations. B) it is easier to model adaptive expectations than it is to model rational expectations. C) adaptive expectations models have no predictive power. D) people are irrational and therefore never learn from past mistakes.
Refer to the table below. If Stuffed Pies is currently producing 13 units of quality, to maximize profit, Stuffed Pies should ________ the units of quality.
Stuffed Pies is a frozen calzone manufacturer. The table above summarizes Stuffed Pies' marginal revenue and marginal cost of quality at various quality amounts.
A) not change
B) increase by 50 percent
C) decrease
D) increase
Which of the following statements best describes the invisible hand as described by Adam Smith in The Wealth of Nations?
a. It describes how the world should be. b. Society should focus on other people. c. Self-interested behavior by individuals can lead to positive social outcomes. d. Self-interested behavior by individuals is harmful to society.
One method used to control the ability of firms to capture monopoly profit in the United States is through
a. government purchase of products produced by monopolists. b. government distribution of a monopolist's excess production. c. enforcement of antitrust laws. d. regulation of firms in highly competitive markets.