Which statement best defines producer surplus?
a. the amount that a seller would have liked to have charged, minus the amount that they actually received
b. the amount that a seller is paid for a good minus the seller’s actual cost
c. the amount that individuals would have been willing to pay, minus the amount that they actually paid
d. when it is impossible to improve the situation of one party without imposing a cost on another
b. the amount that a seller is paid for a good minus the seller’s actual cost
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Use the figure above to answer this question. At a price level of 110
A) real GDP is greater than the aggregate quantity demanded and firms will cut production. B) real GDP is less than the aggregate quantity demanded and firms will increase production. C) inventories will decrease. D) real GDP less than the aggregate quantity demanded and firms will increase prices.
Unlike markup pricing, the strategy of price discrimination is totally independent of the price elasticity of demand for the good in question
Indicate whether the statement is true or false
The gross domestic product of a nation measures:
a. the amount of goods and services exported by the nation. b. the amount of goods and services imported by the nation. c. total expenditures by the nation's government d. the size of the nation's economy.
As Bubba's Bubble Gum Company adds workers while using the same amount of machinery, some workers may be underutilized because they have little work to do while waiting in line to use the machinery. When this occurs, Bubba's Bubble Gum Company encounters
a. economies of scale. b. diseconomies of scale. c. increasing marginal product. d. diminishing marginal product.