The area above the market supply curve and below the market price
A) is equal to the total cost of production.
B) is equal to the total amount of producer surplus in a market.
C) is equal to the total amount of economic surplus in a market.
D) is equal to the marginal cost of the last unit produced.
B
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With an increase in income, a consumer can increase the quantity consumed of
a. only good Y. b. only good X. c. either good, but not both. d. either or both.
Prices of industrial products and wages tend to be the most "flexible."
Indicate whether the statement is true or false
According to this Application, the recent result of the harmattan was to ________ the equilibrium price and ________ the equilibrium quantity of cocoa
A) increase; decrease B) decrease; increase C) increase; increase D) decrease; decrease
Assume that an analyst at a leading business daily observes an increase in productivity across industries which announced healthy annual bonus for their employees. This leads him to conclude that productivity is directly related to the incentive scheme followed by companies. The analyst however ignored the increase in capital per worker ratio and other technological developments in these
companies which also affected productivity. This error in reasoning is related to: a. bounded rationality. b. selection bias. c. representative heuristics. d. availability heuristics.