If a seller's marginal cost is $25, and the price at which the good is sold is $15, the producer surplus is ________
A) -$10
B) $10
C) $15
D) $25
A
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To internalize a negative externality: a. a producer's costs could be reduced by an amount equal to the external cost resulting from the production of a good. b. a producer's costs could be increased by an amount equal to the external cost resulting from the production of a good. c. a producer could receive a subsidy equal to the external cost resulting from the production of a good
d. None of the above are correct.
The supply of labor to a particular job will be greater the
a. less the social status that is attached to the job b. less training is required to perform that job c. lower the fringe benefits are of the job d. less flexible the work schedules are in the job e. higher degree of personal risk involved in the job
The "representative firm" raises its output level as a result of entry in a competitive market.
a. true b. false
With full information any contract will lead to production efficiency
Indicate whether the statement is true or false