In Figure 22.2, which area represents producer surplus to the tobacco company? 

A. AP*C
B. 0BCQ*
C. 0P*CQ*
D. BP*C


Answer: D

Economics

You might also like to view...

How does the "rule of law" increase wealth for a country?

A. It is up to society to make decisions and they can choose whatever rules they want. B. Rule of law takes away incentives for the business. C. Known and predictable laws make governing a business less risky. D. It guarantees business owners profit which improves the country's standard of living.

Economics

There are 9 firms in an industry with market shares in the table above. Calculate the HHI for the industry. What kind of market does this operate in and why?

What will be an ideal response?

Economics

In 2008, the share of debit cards and prepaid cards in total retail transactions was ________, the share of credit cards was ________, and the share of checks and cash was ________

A) 21, 31, 48 B) 48, 21, 31 C) 15, 32, 50 D) 41, 22, 37

Economics

Which of the following is most critical for the maintenance of an efficient and productive economy?

a. Money backed by gold or silver b. Steadily rising prices c. An unlimited and unregulated supply of money d. A properly functioning monetary system e. A well-organized barter system

Economics