Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot can offer their hammer for a minimum of $7. Lace Hardware can offer the hammer for a minimum of $10. Bob's Hardware store can offer the hammer at a minimum price of $13. Given the scenario described, if the market price of hammers increased from $6 to $7:
A. total producer surplus would decrease.
B. total producer surplus would increase.
C. total producer surplus would remain unchanged.
D. total producer surplus cannot be determined with the information given.
Answer: C
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The decline in starting new businesses
A) is concentrated primarily in public service industries. B) is concentrated primarily in high-tech industries. C) is concentrated primarily in health care industries. D) is not concentrated in one industry.
Which of the following is false?
a. Products with close substitutes have elastic demand b. Demand for individual brand is less elastic than industry aggregate demand c. Products with many complements have less elastic demand d. In the long run, demand curves become more elastic
The finite nature of the economy's resource base:
a. will be solved if only we would learn to conserve. b. is only a problem in developing countries. c. will be solved as technology advances. d. will always be with us.
To derive the marginal physical product of capital,
a. all other resources must be held fixed b. capital must be held fixed c. all resources, including capital, must be held fixed d. all resources are variable e. output must be held fixed