The difference between the ________ and the ________ from the sale of a product is called producer surplus
A) lowest price a firm would have been willing to accept; price it actually receives
B) highest price a firm would have been willing to accept; lowest price it was willing to accept
C) cost to produce a product; price a firm actually receives
D) cost to produce a product; profit received
Answer: A
You might also like to view...
Explain why a price discriminating monopolist would not necessarily want to price all along the entire demand curve
What will be an ideal response?
A manager believes there is a 10 percent chance their firm will have to pay $1,000,000 and a 90 percent chance they will be found innocent and pay nothing except the legal fees of $200,000. If the manager chooses to not settle for $300,000 and to enter the litigation instead, which of the following is true?
A) The manager is a risk lover. B) The manager is risk averse. C) The manager is risk neutral. D) The manager is risk intolerant.
According to the simple quantity theory of money, which of the following variables are considered either constant or relatively stable?
A) V and Y B) Y and Ms C) P and Ms D) P and Y
According to the kinked demand curve model, an oligopolist may face
A. more elastic demand than a monopolistic competitor. B. less elastic demand than a monopolistic competitor. C. more elastic demand if she raises her price than if she lowers her price. D. less elastic demand if she raises her price than if she lowers her price.