Which of the following events would increase producer surplus?
a. Sellers' costs stay the same and the price of the good increases.
b. Sellers' costs increase and the price of the good stays the same.
c. Sellers' costs increase and the price of the good decreases.
d. All of the above are correct.
A
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In a monopoly market structure, the firm (the monopolist) always
A) is the whole industry. B) produces too much. C) sells faulty products. D) earns economic profit.
An increase in the wage rate will decrease the demand for labor
a. True b. False
Which of the following practices would indicate that an employer is trying to overcome a moral-hazard problem with his employees?
a. The employer pays his workers wages that are unusually high for the industry and region. b. The employer pays his employees year-end bonuses depending to how well the business does and his observations of the employees' efforts. c. The employer has voluntarily removed video cameras from the factory floor. d. Both A and B are correct.
Other things the same, bonds are likely to have higher interest rates if they have
a. tax exemptions and short terms. b. tax exemptions and long terms. c. no tax exemptions and short terms. d. no tax exemptions and long terms.