Consumer surplus measures the benefit to buyers of participating in a market
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
An increase in income produces a parallel, outward shift in the budget line.
Answer the following statement true (T) or false (F)
The competition faced by firms in an oligopoly with differentiated products is higher than that faced by firm(s) in ________
A) a duopoly with homogeneous products B) perfect competition C) monopolistic competition D) monopoly
The condition that states that the domestic interest rate equals the foreign interest rate minus the expected appreciation of the domestic currency is called
A) the purchasing power parity condition. B) the interest parity condition. C) money neutrality. D) the theory of foreign capital mobility.
For products like parking lots and hotels, costs of building capacity are mostly fixed or sunk and firms in this industry typically face capacity constraints. Therefore,
a. If SRMR>SRMC at capacity, then the firms should price to fill capacity
b. If SRMR