Bambi sells apples that she produces up to the equilibrium price of $20 per bushel. Andre sells green beans that he produces up to the equilibrium price of $18 per bushel. If they both sell the same number of bushels, but Andre makes more profit than Bambi, which of the following situations is true?
a. Producer surplus is greater for green beans than apples.
b. Producer surplus is less for green beans than apples.
c. Producer surplus is the same for green beans and apples.
d. Producer surplus is negative for both green beans and apples.
a. Producer surplus is greater for green beans than apples.
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Suppose a worker signs a contract containing a 7 percent nominal wage increase with inflation expected to be 5 percent. Inflation turns out to be 10 percent, but the contract also contains 50 percent COLA protection
The worker's real wage under the contract A) falls by 3.0 percent. B) rises by 0.5 percent. C) rises by 2.0 percent. D) rises by 1.0 percent. E) falls by 0.5 percent.
Charging higher prices for one category of patients in order to provide free or subsidized care to another group is called
a. price discrimination. b. cost-shifting. c. categorical costing. d. reprehensible and unethical. e. creative accounting.
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and current international transactionsin the context of the Three-Sector-Model?
a. The GDP Price Index rises, and current international transactionsbecomes more negative (or less positive). b. The GDP Price Index and current international transactionsremain the same. c. The GDP Price Index falls, and current international transactionsremains the same. d. The GDP Price Index falls, and current international transactionsrises. e. There is not enough information to determine what happens to these two macroeconomic variables.
Which of the following is an example of a final good or service?
A. lumber purchased by a construction company to bin used in building houses B. wheat a bakery purchases to make bread C. coffee beans Starbucks purchases to make coffee D. a computer purchased by Federal Express to track shipments