Producer surplus is area above supply curve and price

Assignment Help Business Economics

Reference no: EM131085136

True or False

1. Consumer surplus is the buyer's willingness-to-pay minus the seller's opportunity cost of production.

2. If your willingness-to-pay for a hamburger is $3 and you paid $2, then your consumer surplus is $5.00

3. The opportunity cost of production for a seller includes the implicit cost of the seller's time.

4. The height of the supply curve at a selected quantity is the seller's opportunity cost of producing that marginal unit.

5. Total surplus(total well-being) is the seller's cost of production minus the buyer's willingness-to-pay.

6. The competitive market equilibrium outcome is efficient because it allocates the produced output to the buyers who place the highest value on the good

7. Producer surplus is the area above the supply curve and below the price.

8. The competitive market equilibrium outcome maximizes total surplus(total well-being)

9. Producing and consuming more of a good will always increase total surplus(total well-being).

Reference no: EM131085136

Questions Cloud

Give the function table and explain its operation : Give the function table and explain its operation.

Under floating exchange rate regime : Describe two reasons why a country may be facing a Balance of Payments (BOP) deficit. What is the Official Reserves Account (ORA) and why is it more important for countries under a fixed exchange rate regime than for those under a floating exchange r..

Question regarding the protection device input : Write a program that continually checks the state of the input signal at 001 and which outputs the byte 20 (which stops the hoist) at 00 after the protection device input has changed from 00 to 01 and back to 00.

What is the main feature of random access memory : What is the main feature of random access memory?

Producer surplus is area above supply curve and price : Consumer surplus is the buyer's willingness-to-pay minus the seller's opportunity cost of production. If your willingness-to-pay for a hamburger is $3 and you paid $2, then your consumer surplus is $5.00. The opportunity cost of production for a sell..

Describe the purpose of the program : In a microprocessor system, a single-byte number is located at 0060 and also a single-byte number is available at the input I001. The program of this system is given below. Explain each instruction of the following program and describe the purpose..

About relationship between tr and elasticity of demand : Based on what you have learned about the relationship between TR and elasticity of demand, explain how an airline might take advantage of this information in order to maximize its profits?

Wound for four poles : A three-phase induction motor is wound for four poles and is supplied from a 50 Hz system. Calculate:

Money supply-velocity-the price level and real output : The equation of exchange is an identity that relates the money supply, velocity, the price level, and real output. An identity is something that is true by definition.

User Account

All Pages