Total producer surplus is the area below the equilibrium price and above the supply curve
a. True
b. False
Indicate whether the statement is true or false
True
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Under the Clayton Act, which of the following was illegal, even if it was not shown to lessen competition substantially?
a. Price discrimination. b. Tying contract. c. Horizontal mergers by stock acquisition. d. Interlocking directorates.
A monopolistic competitor: a. faces a perfectly elastic demand curve. b. faces an elastic demand curve
c. faces a unit elastic demand curve. d. faces an inelastic demand curve.
The assignment of inputs to specific industries by central planners is made difficult by
A. the interdependency among industries. B. lack of data for decision making. C. the danger of a chain reaction among industries if an error is made at any point. D. All of the responses are correct.
A profit-maximizing monopolist sets
A. his or her price where MC = MR. B. his or her output where MC = MR. C. his or her price where MR > MC. D. his or her output where P = MC.