If consumers paid an amount for any good that reflected the value of the total benefits they receive from consuming it, then
a. consumer surplus would be at a maximum
b. consumer surplus would be equal to zero
c. total revenue would equal variable cost
d. consumer surplus would equal producer surplus
e. producer surplus would exceed consumer surplus
B
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If a tax on 5 cents a tomato lowers the price received by tomato sellers by 5 cents a tomato , then the supply of tomatoes is perfectly ___ and the seller pays ____
A) inelastic; all B) elastic; all C) inelastic; some of D) inelastic; none of E) elastic; none of
The percent increase in the CPI from one year to the next is a measure of the
A) real interest rate. B) inflation rate. C) GDP deflator. D) unemployment rate.
Suppose a firm has an output of 10,000 cans and a total fixed cost of $2,000 . At an output of 5,000 the difference between the total cost and the total variable cost is:
a. b and c. b. $0.40. c. the average fixed cost. d. $2,000. e. $0.20.
Resale price maintenance prevents retailers from competing on price
a. True b. False Indicate whether the statement is true or false