Consumer surplus is
a. the difference between the price of the good and the cost to produce the good.
b, the sum of what consumers are willing to pay and the price of the good.
c. the difference between what consumers are willing to pay and the price of the good.
d. the difference between the cost to produce the good and the amount consumers are willing to pay for the good.
c. the difference between what consumers are willing to pay and the price of the good.
You might also like to view...
Assume that the U.S. dollar depreciates against the Japanese yen. What is the impact on aggregate expenditures and income?
A) Both increase. B) Both decrease. C) Aggregate expenditure increases and income decreases. D) Aggregate expenditure decreases and income increases.
Which of the following is NOT likely to affect investment?
A) variations in expected output B) the nominal interest rate C) the real interest rate D) the tax treatment of depreciation allowances
Keynes argued that the downward slope of the demand for money curve depends on the:
A. equation of exchange. B. rate of interest. C. federal funds rate. D. discount rate.
Refer to Scenario 16.2 below to answer the question(s) that follow. SCENARIO 16.2: The marginal benefit for a particular food is described by MB = 60 - q, where q refers to the quantity of the food. The marginal cost of producing the food is described by MC = 3q. There is a negative externality associated with food production and the marginal social cost of food production is MSC = 5q.Refer to Scenario 16.2. The competitive output level is ________ and the competitive price is ________.
A. 10 units of food; $50 B. 0 units of food; $0 C. 10 units of food; $20 D. 15 units of food; $45