Producer surplus measures the
a. benefits to sellers of participating in a market.
b. costs to sellers of participating in a market.
c. price that buyers are willing to pay for sellers' output of a good or service.
d. benefit to sellers of producing a greater quantity of a good or service than buyers demand.
a
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The table above shows the demand and costs for a single-price monopolist. When it maximizes its profit, the firm makes an economic profit of
A) $15. B) $25. C) $40. D) $45.
The one feature of capital that makes it unlike most inputs is that
A. it is durable. B. it generates economic rents. C. it is nondepletable. D. it requires comparing cash flows across different periods.
Which of the following is most likely to increase productivity growth, as measured using GDP statistics?
a. Reduced capital formation b. Decreased human capital c. Increased research and development d. Increased government regulation e. Higher price of a raw material
We say economists are doing positive economics when they
A. try to improve the welfare of all citizens. B. look for regularities and principles in economic life that can help show how the economy works. C. claim that there is no value free social science so articulating one's values is important. D. focus on policies and rhetoric that encourage people to be optimistic about the future.