Look at this producer surplus graph. If Caroline is already producing wheat at P1, what happens when the price moves to P2?
a. Her producer surplus will decrease.
b. Her producer surplus will increase.
c. Nothing happens because she is already producing at a lower price.
d. She will have to produce more to make the same total profit.
b. Her producer surplus will increase.
You might also like to view...
Which of the following would be considered special interest group?
a. National Rifle Association b. Greenpeace c. the U.S. sugar industry d. all of the above
The goods produced by oligopolists are close substitutes
Indicate whether the statement is true or false
Which of the following would be included in U.S. GNP but not in U.S. GDP?
A. Chipsets produced by U.S.-owned firms operating in China. B. Auto parts produced by a Japanese-owned firm operating in North Carolina. C. Sales of used cars in the United States. D. The tips received by a waiter in New Jersey.
Refer to Table 21.3 below:Table 21.3Units of LaborUnits of OutputMPP00 1 30266 3 304116 What is the marginal physical product of the second unit of labor in Table 21.3?
A. 18. B. 36. C. 33. D. 66.