Producer surplus is the ________ summed over the quantity produced
A) price of the good minus the marginal cost of producing it
B) marginal benefit of the good minus its marginal cost
C) marginal benefit of the good minus its price
D) marginal cost of the good minus the opportunity cost of producing it
E) None of the above answers is correct.
A
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The points along the demand curve represent the maximum price consumers are willing to pay for various quantities of a product.
Indicate whether the statement is true or false.
Holding all else constant, an increase in preferences by Mexicans for U.S. goods will ________ the demand for dollars in the foreign exchange market and ________ the equilibrium Mexican peso/U.S. dollar exchange rate.
A. increase; increase B. decrease; decrease C. increase; decrease D. decrease; increase
One of the reasons government debt is different from individual debt is:
A. the government debt is unrelated to income. B. all government debt is owed to other government agencies. C. government never really needs to pay back its debt. D. government does not pay interest on its debt.
Laissez-faire capitalism limits the government's economic functions to the following, except:
A. Protecting private property rights B. Establishing a legal environment to enforce contracts among individuals C. Preventing individuals and firms from coercing others D. Setting prices of individual goods and services