Which of the following is not true concerning producer surplus?
a. It is qraphically the area under the supply curve and above the market price.
b. It exists in equilibrium
c. A leftward shift of the supply curve will decrease producer surplus.
d. A rightward shift of the supply curve will increase producer surplus.
a
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Under the gold standard era of 1870-1914
A) central banks tried to have sharp fluctuations in the balance of payments. B) central banks tried to avoid sharp fluctuations in the current account of the balance of payments. C) central banks tried to avoid sharp fluctuations in the trade account of the balance of payments. D) central banks tried to avoid sharp fluctuations in the capital account of the balance of payments. E) central banks tried to avoid sharp fluctuations in the balance of payments.
In a Lorenz curve diagram, the 45° line represents:
a. perfect income equality. b. zero inflation. c. a negative income tax. d. an extremely unequal distribution of income.
According to the Black-Scholes formula:
a. the value of an in-the-money option will equal the difference between the stock's current price and the strike price. b. the payoff from an average option is either a multiple or a power of the difference between the strike price and the price they are exercised at. c. the holder of a basket option has the right to buy or sell the underlying at the highest price it has attained over the life of the option. d. the price of a call or put option varies with the price of the underlying asset.
Refer to the below graph of a representative firm in monopolistic competition. If curve (2) represents ATC and line (3) represents demand, then we can conclude that the industry:
A. Has positive economic profits
B. Is in long-run equilibrium
C. Will contract in the long run
D. Is not maximizing profits