Price floors are instituted because the government wants to:
a. help consumers.
b. help producers.
c. raise tax revenue.
d. prevent imports.
e. increase demand.
b
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Producer surplus is the price received ________ summed over the quantity sold
A) plus the consumer surplus B) multiplied by the quantity sold C) minus its marginal cost of production D) subtracted from the value of the good
Capital and labor are distinct from productivity in that ________
A) productivity is independent of technology changes B) productivity can only increase over time C) productivity is subject to diminishing returns D) capital and labor are subject to diminishing marginal returns
The benefit to buyers of participating in a market is measured by
a. consumer surplus. b. producer surplus. c. total surplus. d. deadweight loss.
Refer to the scenario above. Rebecca should place a bid of ________
A) $40,500 B) $45,000 C) $50,000 D) $55,000