In the short run, producers derive surplus from market exchange because
a. total revenue is greater than the minimum amount they would require to sell the good
b. total revenue is equal to the minimum amount they would require to sell the good
c. total revenue is less than the minimum amount they would require to sell the good
d. marginal revenue equals average total cost
e. they can rob consumers of most of their consumer surplus
A
You might also like to view...
If both the production of goods and services increase and prices rise, then the change in nominal GDP
A) definitely understates the change in production. B) definitely accurately reflect the change in production. C) definitely overstates the change in production. D) either understates or might accurately reflect the change in production. E) More information is needed to determine how the change in nominal GDP compares to the change in production.
What type of variables have their movements explained by theory?
A) endogenous B) exogenous C) autonomous D) Both B and C
John believes that when the price of a good increases people will purchase more of the good. This statement is
A) consistent with the law of demand. B) inconsistent with the law of demand. C) referring to money prices. D) consistent with the law of supply.
What are the characteristics of perfect competition?
What will be an ideal response?