Consumer surplus occurs whenever the consumer pays a price
a. equal to marginal revenue.
b. less than the consumer is willing to pay.
c. less than marginal cost.
d. equal to or less than average total cost.
b. less than the consumer is willing to pay.
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When discussing the CPI, the term "commodity substitution bias" refers to changes in
A) prices that lead business to change the items they buy. B) quantities that lead households to change the items they buy. C) prices that lead households to change the items they buy. D) income that lead households to change the items they buy. E) stores so that consumers switch from one store to another.
Increasing the amount of information available to investors helps to reduce the problems of ________ and ________ in the financial markets
A) adverse selection; moral hazard B) adverse selection; risk sharing C) moral hazard; transactions costs D) adverse selection; economies of scale
Which of the following goods is least likely to be in a market basket?
A. Helicopter B. Gasoline C. Barbie dolls D. Breakfast cereal
In a market economy, scarcity of resources is most clearly reflected in
a. supply. b. demand. c. market prices. d. the stock of the resource.