The producer surplus from a good is equal to the
A. maximum amount a consumer is willing to pay for the good minus the actual price of the good.
B. actual price of the good minus the maximum amount a consumer is willing to pay for the good.
C. opportunity cost of producing the good minus its price.
D. price of the good minus its opportunity cost of production.
Answer: D
Microeconomics
- An increase in the price level may be caused
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- Suppose that wages increase sharply this year. Other things being equal a wide-spread increase in wages will have which of the following consequences for the U.S. economy?
- An unanticipated increase in inflation this year will
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