Suppose that the market price for pizzas increases. The increase in producer surplus comes from the benefit of the higher prices to
a. only existing sellers who now receive higher prices on the pizzas they were already selling.
b. only new sellers who enter the market because of the higher prices.
c. both existing sellers who now receive higher prices on the pizzas they were already selling and new sellers who enter the market because of the higher prices.
d. Producer surplus does not increase; it decreases.
c
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The soft drink industry can best be described as:
A) an oligopoly. B) a monopoly. C) perfectly competitive. D) monopolistically competitive.
When the goods market is returning to equilibrium following a decrease in the real interest rate, ________
A) saving and output are both rising B) saving and output are both declining C) saving is rising, while output declines D) all of the above E) none of the above
In 1860 government revenues exceeded the earnings of cotton exports by fourfold
Indicate whether the statement is true or false
Suppose that, given the same number of workers, the United States can produce two times as many TVs or 20 times as many potatoes as Chile. Which of the following statements is true?
A. Chile should trade with the United States for potatoes because the United States has an absolute advantage in the production of potatoes. B. Chile should trade with the United States for TVs because the United States has an absolute advantage in the production of potatoes. C. The United States can benefit from trading TVs but not potatoes with Chile. D. The United States has absolute advantage in producing both goods.