Which of the following scenarios describes a producer surplus?
a. The fashion company would accept $300 for its new wool jacket, but they sell it for $500.
b. Nina is willing to spend $750 for a new designer wool jacket, but she finds it on sale for $500.
c. The city budgeted $10,000 for a management consultant, but it was able to hire one for $9,000.
d. The store needed $100 a dress to cover costs, but the few last dresses had to be marked down to $60.
a. The fashion company would accept $300 for its new wool jacket, but they sell it for $500.
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Equilibrium requires two conditions: (1) that income equals output in the economy, and (2) that in equilibrium, aggregate expenditure (or consumption in this example) equals output. Explain why both of these are assumed to be true.
What will be an ideal response?
A free trade agreement plus a common set of tariffs toward non-members is called
A) a common market. B) a customs union. C) a free trade area. D) an economic union.
Refer to the above table. When output rises from 3 units to 4 units, marginal costs are
A. $22. B. $10. C. $16. D. $31.
What accounts for differences in living standards between rich and poor countries today?
What will be an ideal response?