What is consumer surplus?
What will be an ideal response?
Consumer surplus equals the difference between the marginal benefit of the good and the price paid for it summed over the quantity consumed. The total consumer surplus in a market equals the area under the demand curve and above the price.
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Refer to Figure 9.1. If the market is in equilibrium, total consumer and producer surplus is
A) $0. B) $100. C) $800. D) $1200. E) $2000.
Diversification involves:
A. investing all your money in a variety of financial assets, with varying amounts of risk. B. investing all your money in one company. C. investing all your money in the same type of financial assets, with the same amount of risk. D. None of these statements is true.
marketing services that add "time value" include:
a) transportation b) processing c) marketing d) storage e) all of the above
Refer to the data provided in Table 9.4 below to answer the question(s) that follow. Table 9.4qTFCTVCTCMCAVCATC0$100 $0$100 ---- -- 11004014040 40 140 21006016020 30 80 31009019030 30 63.334100124 224 343156 5100180 280 56 36 56 6100 264 364 84 44 60.677100 372 472 108 53.14 67.42Refer to Table 9.4. If the market price is $40, then to maximize profits this firm should produce
A. two units of output. B. one unit of output. C. zero units of output. D. an output level of about four.