When consumers would have been willing to pay higher prices at various quantities consumed than the market clearing price, the differences are called
A. producer surplus.
B. consumer surplus.
C. scarcity.
D. opportunity cost.
Answer: B
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Which of the following would cause an increase in the market supply of mountain bikes?
A) a decrease in the demand for mountain bikes B) an increase in taxes levied on mountain bike manufacturers C) an increase in the cost of components used to assemble mountain bikes D) an increase in the number of firms making mountain bikes
Assume that the demand for film cameras decreases in a competitive market. What will most likely happen to the equilibrium price and quantity of film cameras?
a. Price will decrease; quantity will increase b. Price will decrease; quantity will decrease c. Price will increase; quantity will increase d. Price will increase; quantity will decrease
All of the following would be considered explicit costs of operating a business except
A) utility expenses. B) the cost of raw materials used in production. C) the rental value of equipment the company owns and uses for its own production. D) advertising expenses.
Refer to the information provided in Figure 13.4 below to answer the question(s) that follow. 
Figure 13.4Refer to Figure 13.4. At its production point, the ________ for this firm is $11.
A. marginal cost B. profit-maximizing price C. average total cost D. marginal revenue