Producer surplus is the difference between the highest price someone is willing to pay and the price he actually pays
Indicate whether the statement is true or false
FALSE
You might also like to view...
What would be a way for the Federal Reserve to stimulate a sluggish economy?
A) buy government bonds on the open market B) encourage the stock market C) print more money D) sell more government bonds
Based on empirical evidence, the "farm problem" that has confronted U.S. policymakers for many years is attributable, in large part, to the relatively inelastic demand for many agricultural products
Indicate whether the statement is true or false
Monopolistic competition is similar to perfect competition in that:
A. firms advertise in both cases. B. both entail the production of differentiated products. C. output is at minimum average total cost in both. D. long-run profits tend toward zero in both.
Sunk costs are those costs that:
A. do not vary without output. B. can be collected even after they have been paid. C. do vary with output. D. are forever lost after they have been paid.