What area in the above figure is the producer surplus at the efficient quantity?
A) A
B) A + B + C
C) F
D) D + E + F
D
You might also like to view...
If real GDP is greater than nominal GDP for a particular year, then
A) production must have fallen between the current year and the base year. B) production must have increased between the current year and the base year. C) prices must have fallen between the current year and the base year. D) prices must have risen between the current year and the base year. E) prices must have fallen between the current year and the immediate past year.
Monetarists assume that suppliers of labor
a. always have perfect information about the real wage. b. base their decisions on the expected real wage. c. may or may not know the real wage. d. could not possibly have perfect information.
All of the following apply to the description of a market in equilibrium except
a. quantity supplied equals quantity demanded b. the intersection of the supply and demand curves c. no excess supply exists d. no excess demand exists e. the price of the good is falling
Movement from an inefficient allocation to an efficient allocation in the Edgeworth Box will
A. increase the utility of all individuals. B. increase the utility of at least one individual, but may decrease the level of utility of another person. C. increase the utility of one individual, but cannot decrease the utility of any individual. D. decrease the utility of all individuals.