Producer surplus is
A) the total difference between the total amount that producers actually receive for an item and the total amount that they would have been willing to accept.
B) the total difference between the total costs firms incur in producing an item and the utility consumers derive from purchasing the item.
C) the total difference between the total amount that consumers are willing to pay for an item and the total amount that producers would like to receive.
D) the total difference between the utility consumers derive from purchasing an item and the total costs firms incur in producing the item.
A
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The United States Mint is the only legal entity to produce circulating coinage for the United States. Michael Jackson's estate owns the copyrights to many of the Beatles songs
Xcel Energy is a public utility company who is the sole provider of electricity and natural gas in some states such as Colorado, New Mexico and Minnesota. Which of these entities, if any, is a natural monopoly? A) United States Mint B) Xcel Energy C) Michael Jackson's estate D) None of these are natural monopolies.
In the ________, one firm sets its output first, and then a second firm, after observing the first firm's output, makes its output decision
A) Cournot model B) model of monopolistic competition C) Bertrand model D) kinked-demand model E) none of the above
In economics, abstraction from reality is necessary because of the complexity of the real world.
Answer the following statement true (T) or false (F)
The effect of budget deficits on interest rates
a. increases private investment, so eventually the capital stock rises. b. increases private investment, so eventually the capital stock falls. c. decreases private investment, so eventually the capital stock rises. d. decreases private investment, so eventually the capital stock falls.