The area above the market supply curve and below the market price
A) is equal to the total amount of producer surplus in a market.
B) is equal to the marginal cost of the last unit produced.
C) is equal to the total amount of economic surplus in a market.
D) is equal to the total cost of production.
Answer: A
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Refer to Table 11.1. What is the value of gross private domestic investment?
A) $1,500. B) $1,400. C) $1,600. D) $2,000.
Economic profit is always
A) greater than accounting profit. B) equal to accounting profit. C) less than accounting profit. D) equally likely to be either greater or less than accounting profit.
If the U-shaped ATC curve is flattened out at its lowest point(s), we would have
A. diminishing returns. B. increasing returns. C. negative returns. D. proportional returns to scale.
An increase in demand will lead to a decrease in supply in the long run.
Answer the following statement true (T) or false (F)