Producers' surplus is
A) the difference between the price a buyer pays for a good and the highest price he would have paid for the good.
B) the difference between the price a seller receives for a good and the minimum price for which he would have sold the good.
C) the difference between the price a seller receives for a good and the price a buyer pays for the good.
D) equal to price times quantity sold.
E) equal to the seller's minimum price and the buyer's maximum price.
B
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What do you think would be the Cobb-Douglas single best prescription for poor countries to catch up with the rich?
A) to increase their stock of capital B) to increase their labor force C) to find more efficient ways to allocate and use capital and labor D) to ask help of the rich countries E) none of the above
If the price of automobiles were to increase substantially, the demand curve for gasoline would most likely
A) shift leftward. B) shift rightward. C) remain unchanged. D) become steeper.
The market demand curve in perfect competition is horizontal.
Answer the following statement true (T) or false (F)
Which of the following is an example of consumption?
a. Fender Corp. buys a new robot for its automobile factory. b. Karabo buys cheese at a store for her dinner. c. Joe’ s Hardware buys a new cash register. d. Cook County buys a new printer for office use.