The figure above shows Clara's demand for CDs. If the price for a CD is $15, then Clara
A) receives no consumer surplus on the 6th CD she buys.
B) receives a total of $10 of consumer surplus.
C) will buy no CDs.
D) receives a total of $40 of consumer surplus.
A
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Producer surplus is the difference between the highest price a firm is willing to accept for a product and the price it actually receives for the product
Indicate whether the statement is true or false
A network effect arises whenever
A) firms in an oligopolistic industry engage in limit pricing. B) firms in an oligopolistic industry engage in a zero-sum game. C) a consumer's willingness to purchase a good or service is influenced by how many others also buy or have bought the item. D) a producer's willingness to produce a good or service is influenced by how many other firms also produce or have produced the item.
For a perfectly competitive firm,
A. price is always greater than marginal revenue. B. price is always less than marginal revenue. C. price is always equal to marginal revenue. D. price and marginal revenue are unrelated.
Assuming everything else stays the same, an increase in the price of laptop computers will __________ of laptop computers.
a) decrease the quantity demanded b) increase the demand c) increase the quantity demanded d) decrease the demand