Consumer surplus for the whole market
a. is the value placed on the sum of the marginal utilities of a good for all consumers
b. is the triangular area between the demand curve and the equilibrium price in a demand and supply graph
c. corresponds to the area below the market price in a graph of the demand curve
d. is the utility that is left over after a consumer pays for a good
e. emerges when the consumer pays the equivalent of the good's marginal utility
b. is the triangular area between the demand curve and the equilibrium price in a demand and supply graph
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One reason that international trade is restricted is that
A) the individual gain to parties who benefit from the protection is much larger than the individual loss to parties who lose. B) the government completely pays the losers from international trade for their losses. C) protectionism benefits consumers. D) the government cannot measure the cost of protectionism.
A perfectly competitive firm produces 3,000 units of a good at a total cost of $36,000. The price of each good is $10. Calculate the firm's short-run profit or loss
A) loss of $6,000 B) profit of $30,000 C) profit of $6,000 D) There is insufficient information to answer the question.
Monopolistic and perfect competition are alike in that: a. a firm's long-run equilibrium output is located where long-run average total cost is increasing. b. a firm's long-run equilibrium output is located where long-run average total cost is minimized. c. firms earn a normal rate of return in the long run
d. firms are price takers.
Which of the following is false?
a. Accepting a reduction in current income to acquire education and training can increase future earning ability, which can raise the standard of living. b. Improvements in literacy stimulate economic growth by reducing barriers to the flow of information and raising labor productivity. c. One problem of providing enough education in poorer countries is that since children in developing countries are an important part of the labor force at a young age, there is a higher opportunity cost of education in terms of foregone contribution to family income. d. Investment alone guarantees economic growth per capita.