Producer surplus is
A) the total difference between the total amount that producers actually receive for an item and the total amount that they would have been willing to accept.
B) the total difference between the total costs firms incur in producing an item and the utility consumers derive from purchasing the item.
C) the total difference between the total amount that consumers are willing to pay for an item and the total amount that producers would like to receive.
D) the total difference between the utility consumers derive from purchasing an item and the total costs firms incur in producing the item.
Answer: A
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A. workers. B. consumers. C. businesses. D. commodity market speculators.
For any given country, the net capital outflows to all other countries equal:
A. net foreign direct investment to all other countries. B. net exports to all other countries. C. national savings. D. net capital inflows from all other countries.
A firm scaled down its operation by reducing all inputs by 50% and experienced a more-than-50% decrease in output. If all input prices remain unchanged, the firm's long-run average cost exhibits:
A. economies of scale at the current output level. B. diseconomies of scale at the current output level. C. a constant long-run average cost at the current output level. D. diminishing marginal returns at the current output level.
When production efficiency does NOT occur,
i. an economy is producing at a point within its PPF. ii. there are unemployed resources. iii. allocative efficiency cannot occur. A) i only B) i and ii C) iii only D) i and iii E) i, ii, and iii