Producer surplus is the
What will be an ideal response?
amount the seller is paid less the cost of production.
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At the end of World War I (1918), the United States
A. emerged as the world's leading industrial power. B. was the world's largest economy. C. had become the greatest military power. D. All of the choices are true.
Tax cuts on business income increase aggregate demand by increasing
A) wage rates. B) government spending. C) consumption spending. D) business investment spending.
Over the past year, productivity grew 1%, capital grew 0%, and labor grew 5%. If the elasticities of output with respect to capital and labor are 0.4 and 0.6, respectively, how much did output grow?
A) 1% B) 2% C) 3% D) 4%
The free-rider problem faced by private information-collection firms results in their
A) usually going out of business within a few years. B) collecting less than all the available information about the firms they investigate. C) being plagued by lawsuits. D) charging fees higher than can be justified by market conditions.