In a perfectly competitive market, consumer surplus typically is
A) positive.
B) negative.
C) zero.
D) undefined.
A
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A subsidy in an industry would result in: a. an increase in consumer surplus. b. an increase in producer surplus c. both (a) and (b)
d. none of the above.
Among the very rich, the main source of income is most likely their wages
Indicate whether the statement is true or false
Which of the following is correct?
a. If developing countries limit career and educational opportunities for women, birth rates are likely to be lower. b. Growth rates in developed and developing countries are nearly the same. c. Historically, in periods where the rate of population growth was high, so was the rate of growth in world real GDP per person. d. None of the above is correct.
Consider the following two investments. One is a risk-free investment with a $100 return. The other investment pays $2,000 20% of the time and a $375 loss the rest of the time. Based on this information, answer the following: (i) Compute the expected returns and standard deviations on these two investments individually. (ii) Compute the value at risk for each investment. (iii) Which investment will risk-averse investors prefer, if either? Which investment will risk- neutral investors prefer, if either?
What will be an ideal response?