Answer the following questions true (T) or false (F)
1. The total amount of consumer surplus in a market is equal to the area below the market demand curve and above the market price.
2. The additional cost to a firm of producing one more unit of a good or service is equal to producer surplus.
3. The additional benefit to a consumer from consuming one more unit of a good or service is the marginal benefit.
1. TRUE
2. FALSE
3. TRUE
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Based on the information in Scenario 1, nominal GDP in 2015 in this economy was
A) $830. B) $1,025. C) $1,090. D) $1,345.
Suppose people value clean air more as their incomes increase. What would happen to the optimal amount of clean air as a country develops economically? Is there an economic prediction we can make from this?
What will be an ideal response?
If one person's consumption of a good means that no one else can consume it,
a. that good is called a pure public good b. production of that good creates a negative externality c. consumption of that good creates a positive externality d. the good is said to be excludable e. the good is said to be rival
International trade can make some individuals within a country worse off, even as it makes the country as a whole better off
a. True b. False Indicate whether the statement is true or false