If there is a sole producer of a good, and he faces no threat of competition, it is likely that:
A. the consumer surplus is greater than in a competitive equilibrium.
B. the price is set inefficiently high.
C. the price is set below the competitive equilibrium price.
D. the market is efficient.
B. the price is set inefficiently high.
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A business owned by a single person
What will be an ideal response?
Producer surplus is
A. the total difference between the total costs firms incur in producing an item and the utility consumers derive from purchasing the item. B. the total difference between the utility consumers derive from purchasing an item and the total costs firms incur in producing the item. C. the total difference between the total amount that producers actually receive for an item and the total amount that they would have been willing to accept. D. the total difference between the total amount that consumers are willing to pay for an item and the total amount that producers would like to receive.