The difference between the lowest price for which a supplier is willing to provide a good or service and the revenues a supplier actually receives for selling it is called ______.
a. value balance
b. equilibrium price
c. supply curve
d. producer surplus
d. producer surplus
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Which of the following does the Sherman Antitrust Act forbid?
a. Monopolization or attempts to monopolize b. All types of price discrimination c. Competition among firms d. Unfair methods of competition e. Privatization of government owned firms
According to the equation of exchange, if total output and velocity are constant, a 20 percent increase in the money supply leads to
a. a 20 percent decrease in the price level. b. less than a 20 percent decrease in the price level. c. less than a 20 percent increase in the price level. d. a 20 percent increase in price level.
For price discrimination to work, the young should ________ than/to the old.
Fill in the blank(s) with the appropriate word(s).
Assume there are no investment projects that will produce an expected rate of return of 8 percent or more. There are, however, $2 billion worth of investment projects with an expected rate of return at 7 percent, an additional $2 billion for every drop of the interest rate by 1 percent. If the real interest rate is 3 percent in this economy, the cumulative amount of investment at the 3 percent or higher rate of return is:
A. $10 billion B. $8 billion C. $6 billion D. $4 billion