Graphically, the producer surplus for a given demand curve is the total area:
a. below the marginal social cost curve and above the market price.
b. above the supply curve and below the market price
c. below the demand curve and above the supply curve.
d. below the private cost curve and above the market price.
b
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Explain what happens to the money supply, interest rates, investment spending and GDP when the Fed makes open market bond purchases
What will be an ideal response?
Assume that a firm's marginal revenue curve intersects the rising portion of the marginal cost curve at 100 units of output. At this output level, the profit-maximizing firm's total fixed cost is $600 and its total variable cost is $400 . If the price of the product is $8 per unit, the firm should produce:
a. zero units of output. b. less than 100 units of output. c. 100 units of output. d. more than 100 units of output. e. 200 units of the output.
You are a collector of antique coins. You purchase a silver dollar minted in 1898 . Is this sale included in GDP for the current year?
a. Yes, provided the coin is in mint condition. b. No, it is not. c. No, unless the coin has been in circulation. d. Yes, it is. e. Only if it is part of the current money supply.
What are the effects on a market when there is entry?
What will be an ideal response?