If the market price of a basketball is $35 and the full cost of producing it is $20, then a basketball producing firm gets producer surplus of
A. 1 basketball.
B. $35.
C. $20.
D. $15.
Answer: D
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If the government fiscal deficit equals $240 million and government borrowing equals $120 million, what is the change in the money supply in the economy?
a. $120 million b. $240 million c. $360 million d. $480 million e. $600 million
According to the classical model, there is no need for government intervention in the economy. if the economy is left alone, full employment output will eventually occur
a. True b. False
In 2007, foreigners hold about _____ percent of the national debt
a. 25 b. 40 c. 10 d. 3 e. 75
Many fast-food restaurants have begun offering value meals with fruit or salad instead of French fries. If consumers find this idea attractive, the market demand for potatoes will most likely:
A. increase, which may result in short-run losses for potato growers. B. decrease but have no effect on the profits earned by potato growers in the short run. C. increase but have no effect on the profits earned by potato growers in the short run. D. decrease, which may result in short-run losses for potato growers.