Consumer surplus
A) is the difference between what a consumer pays for a good and the producer's cost.
B) is the extra money a consumer pays above the minimum necessary price for the producer to produce it.
C) is the difference between what a consumer would willingly pay for a good and the price actually paid.
D) equals zero in the long run.
C
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The mangers of Healthy Snacks and Healthy Bars are engaged in a strategic interaction in which their interests are aligned, but there is more than one possible equilibrium. All of the following can help the managers determine the equilibrium outcome except which one?
A) an announcement by Healthy Snacks regarding their future plans, but not an announcement by Healthy Bars regarding their future plans B) the Pareto criterion C) an announcement made by either firm regarding their future plans D) a focal point
A decrease in the money supply
a. lowers the interest rate, causing a decrease in investment and a decrease in GDP. b. lowers the interest rate, causing a decrease in investment and an increase in GDP. c. raises the interest rate, causing an increase in investment and a decrease in GDP. d. raises the interest rate, causing an increase in investment and an increase in GDP. e. raises the interest rate, causing a decrease in investment and a decrease in GDP.
A change in the exchange rate for a country's currency alters the prices of
A. Exports only. B. Imports only. C. Both exports and imports. D. Only domestic goods and services.
How does profit ration entrepreneurship?
What will be an ideal response?