Producer surplus definitely exists when the
A) price exceeds marginal benefit.
B) price exceeds marginal cost.
C) marginal cost exceeds the price.
D) marginal benefit exceeds the price.
E) marginal benefit exceeds the marginal cost.
B
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Shortages normally accompany an effective price floor.
Answer the following statement true (T) or false (F)
The level of output at which the short-run aggregate supply curve and the aggregate demand curve intersect is the full-employment level of GDP
Indicate whether the statement is true or false
The belief that the regulators of the U.S. financial system would not tolerate any losses by depositors at large depository institutions is called
A) the too-big-to-fail doctrine. B) the regulatory capture hypothesis. C) the lender of last-resort doctrine. D) corporate banking system welfare.
A firm whose production function displays increasing returns to scale will have a total cost curve that is
a. a straight line through the origin. b. a curve with a positive and continually decreasing slope. c. a curve with a positive and continually increasing slope. d. a curve with a negative and continually decreasing slope.