Answer the following questions true (T) or false (F)
1. The total amount of producer surplus in a market is equal to the area below the supply curve.
2. Marginal cost is the additional cost to a firm of producing one more unit of a good or service.
3. Marginal benefit is the total benefit to a consumer from consuming one more unit of a good or service.
1. FALSE
2. TRUE
3. FALSE
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If real GDP per person rises above the subsistence level then, according to classical growth theory,
A) a population explosion will occur. B) labor productivity growth permanently increases. C) population growth will slow down. D) real GDP per person will fall below the subsistence level. E) real GDP per person will remain above the subsistence level.
What is the distinction between a money price and a relative price?
What will be an ideal response?
Business finance companies
A) purchase accounts receivable of small firms at a discount. B) sell commercial paper and buy long-term corporate bonds. C) take in deposits from savers and buy corporate commercial paper. D) are strictly regulated by state governments.
aWanda sold her mother’s dining set to Mattie for $250. Later, Mattie told LaWanda that she would have paid her $300. What is the term for the fifty-dollar difference between what Mattie paid and what she was willing to pay?
a. market equilibrium b. consumer surplus c. producer surplus d. market subsidy