According to the graph shown, producer surplus is:
A. $36.
B. $48.
C. $120.
D. None of these.
B. $48.
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What does the Herfindahl-Hirschman Index value near 10,000 imply about the market?
a. Pure monopoly b. Perfect competition c. Monopolistic competition d. Oligopoly
Within the AD/AS model, an increase in capital formation that permits the economy to achieve a larger output will
What will be an ideal response?
When the firm increases output and the costs rise proportionately, then the long-run average cost curve is ________ and the firm is experiencing ________.
A. horizontal; constant returns to scale B. downward sloping; constant returns to scale C. upward sloping; diseconomies of scale D. downward sloping; economies of scale
(Consider This) Some economists believe that modest inflation, say 2-3 percent, might help reduce unemployment during recessions. Which of the following best explains their argument?
A. Inflation will cause workers' real income to decline, encouraging them to work harder to find more and better employment. B. Higher prices will increase firm profitability, making them want to hire more workers. C. Higher prices will correspond with higher wages, which will stimulate demand and employment. D. Anticipating this inflation, consumers will increase spending to beat the price increases, increasing demand, output, and employment.