Producer surplus is
A. the difference between willingness to sell and full costs of productions for the firm.
B. current market price.
C. the difference between current market price and full costs of production for the firm.
D. the difference between the maximum a person is willing to pay and current market price.
Answer: C
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Who of the following would be considered a discouraged worker?
A. Marissa has a Ph.D. in physics, but is currently employed full time driving a taxi. B. Anna Marie has been looking for a job every day for the last month, but has not been hired. C. Ray wants to work forty hours per week, but can only find work for twenty hours per week. D. Frank would like to work, but has not looked for work because he believes no jobs are available.
When trade is possible, each country can produce the goods that it has:
A. a comparative advantage at producing, rather than the exact combination of goods its consumers want. B. an absolute advantage at producing, rather than the exact combination of goods its consumers want. C. an absolute advantage at producing, rather than the goods it has a comparative advantage in. D. a comparative advantage at producing, rather than the exact combination of goods its producers want.
A nation can determine how close it is to the classical range by considering its:
a. Employment rate. b. Net export position. c. Exchange rate d. None of the above.
The variety of products and product features that consumers may choose from in monopolistically competitive industries:
A. at least partially offsets the economic inefficiencies of this market structure. B. leads to an optimal allocation of resources in the market structure. C. makes the demand curves facing firms in these industries more elastic. D. guarantees that firms produce at full-capacity output levels.