Since a firm is willing to sell its product at the marginal cost and since the firm receives the market price, the difference between the two is:

a. consumer surplus.
b. economic profit.
c. marginal revenue.
d. producer surplus.
e. a shortage.


d

Economics

You might also like to view...

Under the least squares assumptions for the multiple regression problem (zero conditional mean for the error term, all Xi and Yi being i.i.d., all Xi and ui having finite fourth moments,

no perfect multicollinearity), the OLS estimators for the slopes and intercept A) have an exact normal distribution for n > 25. B) are BLUE. C) have a normal distribution in small samples as long as the errors are homoskedastic. D) are unbiased and consistent.

Economics

As more workers are hired to harvest grapes in a vineyard, the fields become overcrowded. As a result, the marginal product of labor is likely to diminish

a. True b. False Indicate whether the statement is true or false

Economics

According to Keynesian economists, the aggregate supply curve is

a. horizontal b. vertical c. vertical at low levels of output and horizontal at high levels of output d. horizontal at low levels of output and vertical at high levels of output e. upward sloping

Economics

A dominant strategy:

A. is always the same for all players of a game. B. exists in every game. C. is the best one to follow no matter what strategy other players choose. D. awards the highest achievable payoff in a game.

Economics