In the figure above, the equilibrium market price is $20. Area A is the
A) marginal cost of 150th unit.
B) willingness to pay for the 150th unit.
C) producer surplus.
D) consumer surplus.
E) marginal benefit of 150th unit.
C
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Defenders of limits on economic growth are concerned that continued economic growth will eventually:
A. reduce the rate of technological progress. B. make plant and equipment obsolete. C. raise interest rates. D. exhaust natural resources.
If the supply of labor to a monopsonist is everywhere unit elastic, then the wage will equal
A) the marginal expenditure. B) one-half of the marginal expenditure. C) the marginal revenue product of labor. D) one.
As interest rates fall,
A) the values of bonds rise. B) the values of bonds fall. C) the values of bonds are unchanged. D) the value of perpetuities are unchanged, but the value of other bonds change in value. E) the value of all bonds except perpetuities change.
A perfectly competitive firm need never consider
a. price because it cannot control price b. its fixed cost because it cannot shut down c. its market share because advertising keeps it competitive d. the effect of its own production on price e. barriers to entry because the barriers never change