Surplus refers to:
A. a way of measuring who benefits from transactions and by how much.
B. the difference between the price the buyer would have paid and the actual price paid.
C. the difference between the price the seller would have accepted and the actual sell price.
D. All of these statements are true.
D. All of these statements are true.
You might also like to view...
For the majority of the U.S. population ________
A) consumption is driven solely by current income B) consumption smoothing is possible C) a change in lifetime resources will not change current consumption D) a change in lifetime resources will not change future consumption
When the monopoly insurer cannot observe the care taken by the insured party to avoid an accident, the most profitable contract for it:
a. offers full insurance at a higher price than the full-information policy. b. offers full insurance at a lower price than the full-information policy. c. offers partial insurance at a higher price than the full-information policy. d. offers partial insurance at a lower price than the full-information policy.
In a monopolistically competitive market, the consumer receives the benefit of
A) production at minimum average cost. B) production where price equals marginal cost. C) product differentiation. D) allocative efficiency.
Author A accepts a $5,000 advance and a 10% royalty after 5,000 books are sold. Author B foregoes the advance and negotiates for a 15% royalty on all books sold. Author C decides to self publish his book and keep 50% of all sales revenue. Which of these authors expects to sell the fewest books?
A) Author A B) Author B C) Author C D) They are all equally likely.