Bill created a new software program he is willing to sell for $200 . He sells his first copy and enjoys a producer surplus of $150 . What is the price paid for the software?
a. $50.
b. $150.
c. $200.
d. $350.
d
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A firm in an oligopoly is similar to a monopoly in that both firms
A. could have significant market power and control over price. B. do not face competition from others. C. do not need to advertise. D. face very inelastic demand for their products.
The total revenue from the sale of a good or service is calculated by multiplying the price paid by the number of units sold
Indicate whether the statement is true or false
Part of the increase in currency holdings in the 1960s and 1970s can be attributed to
A) increases in income tax rates. B) the switch from progressive to proportional income taxes. C) the adoption of regressive taxes. D) bracket creep due to inflation and progressive income taxes.
Positive externalities arise when
A) an unprofitable firm is shut down. B) a profitable firm is regulated. C) tax rates are reduced. D) production of a good generates benefits that spill over to third parties.