Producer surplus is the sum of the profits earned by all firms in a market
Indicate whether the statement is true or false
False. This definition ignores fixed costs. Producer surplus minus fixed costs equals profits.
You might also like to view...
Which of the following are mentioned as forces of the new growth theory that influence economic growth?
I. Technology II. Research III. Innovations A) II and III only B) I only C) I, II, and III D) I and II only E) I and III only
Firm governance must enhance
A) wages. B) control by stockholders. C) efficiency. D) government regulation.
A subsidy to firms intended to reduce pollution in an industry would
a. shift the LRAC curve upward. b. have the same impact on the firm as a tax. c. likely drive some existing firms from the industry. d. likely have the paradoxical effect of increasing pollution in the industry in the long run.
A principle is a self-evident truth that most people readily understand and accept.
Answer the following statement true (T) or false (F)