Producer surplus for an individual seller is equal to:
A) the marginal cost of the good minus the willingness to pay for the good.
B) the marginal cost of the good minus the price of the good.
C) the price of the good minus the marginal cost of producing the good.
D) the willingness to pay for the good minus the price of the good.
C) the price of the good minus the marginal cost of producing the good.
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A(n) ________ in the supply of loanable funds ________ the real interest rate and ________ investment
A) increase; raises; decreases B) decrease; raises; increases C) increase; raises; increases D) decrease; raises; decreases E) decrease; lowers; decreases
Suppose you hear Professor I.M. Dismal say, "There is no substitute for carefully reading your textbook!" In the real world, students
A) will always and absolutely obey their professor's orders. B) will purchase the textbook regardless of its price. C) will often find what they believe are useful substitutes for reading the text. D) will have a vertical demand curve for textbooks.
Most of the money income that Americans receive annually derives from ownership of
A) interest-bearing bank accounts. B) personal attributes. C) political influence. D) real estate. E) stocks and bonds.
Other things being equal, suppose that the demand for wheat in constant quality units increases. The increase in demand will cause
A) a surplus of wheat. B) a higher equilibrium price and higher equilibrium quantity of wheat. C) fall in the market clearing price of corn, a substitute for wheat. D) a higher equilibrium quantity, but a lower equilibrium price of wheat.