Consumers' willingness to pay for a good minus the amount they actually pay for it equals
a. consumer surplus.
b. consumer benefit.
c. price discriminant.
d. deadweight loss.
a
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Microsoft found that instead of producing a dvd player and a gaming system separately, it is cheaper to incorporate dvd playing capabilities in their new version of the gaming system. Microsoft is taking advantage of
a. Economies of Scale b. Learning curve c. Economies of Scope d. Decreasing marginal costs
The market demand for a monopoly firm is estimated to be:Qd = 100,000 - 500P + 2M + 500PRwhere Qd is quantity demanded, P is price, M is income, and PR is the price of a related good. The manager has forecasted the values of M and PR will be $50,000 and $20, respectively, in 2016. For 2016, the marginal revenue function is
A. MR = 290 - 0.002Q. B. MR = 580 - 0.001Q. C. MR = 600 - 0.004Q. D. MR = 290 - 0.5P. E. none of the above
The principle of diminishing sensitivity holds that:
A. the marginal impact of enlarging a change from the status quo declines with the size of the change. B. the marginal impact of enlarging a change from the status quo increases with the size of the change. C. the total impact of enlarging a change from the status quo declines with the size of the change. D. the total impact of enlarging a change from the status quo increases with the size of the change.
Which of the following is not a determinant of Price Elasticity of Demand?
(a) Availability of close substitutes. (b) Adjustment time. (c) The level of supply in the market. (d) The proportion of income spent on the product.