The amount that a seller is paid for a good minus the seller’s actual cost is called:
a. producer surplus.
b. consumer surplus.
c. total surplus.
d. demand surplus.
a. producer surplus.
The amount that a seller is paid for a good minus the seller’s actual cost is called producer surplus.
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Winnie's Car Wash is a perfectly competitive firm. The table above shows Winnie's total product schedule. If the price of a car wash is $4, and Winnie maximizes his profit when he employs 3 workers, the wage rate is
A) $25 per day. B) $30 per day. C) $70 per day. D) $50 per day.
An increase in the quantity of capital shifts both the long-run and short-run aggregate supply curves
Indicate whether the statement is true or false
Because of a decrease in labor costs, a monopoly finds that its marginal cost and average total cost have decreased. The monopoly ________ its price and ________ its quantity
A) raises; increases B) raises; decreases C) lowers; increases D) lowers; decreases
Which of the following functions of money would be violated if inflation were high?
A) store of value B) medium of exchange C) unit of account D) certificate of gold