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8 Feb 2020

_____ is the extra profit obtained by a producer when they receive a price for a good that is more than the minimum amount they were willing to accept.

 

a) Producer surplus. 

b) Consumer surplus.

c) Total Surplus.

d) All of the above.

 

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Jamar Ferry
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8 Feb 2020

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Related questions

When a nation opens itself to trade in a good and becomes an importer,

a. producer surplus decrease, but consumer surplus and total surplus both increase.

b. producer surplus decrease, consumer surplus increase, so the effect on total surplus become unambiguous.

c. producer surplus and surplus increase bt consumer surplus decrease.

d. producer surplus, consumer surplus, and total surplus all increase  

Refer to figure 7-24. If 6 units of the good are produced and sold, then:

a. consumer surplus is greater than producer surplus

b. producer surplus is maximized.

c. the sum of consumer surplus and producer surplus is maximized.

d. consumer surplus equals producer surplus. 

If an allocation of resources is efficient then

a. producer surplus is equal to consumer surplus

b. producer surplus is more than consumer surplus

c. the sum of producer and consumer surplus is maximized

d. None of the above

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