Which of the following is true?
i. Marginal cost is measured by the maximum price that consumers are willing to pay for another unit of a good or service.
ii. Producer surplus equals marginal benefit minus price, summed over the quantity produced.
iii. A supply curve is a marginal cost curve.
A) only iii
B) only i
C) only ii
D) i and ii
E) i and iii
A
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Firms tend to lower the price of their goods after acquiring a firm that sells a complementary good because
a. They gain market power b. There is an increase in the overall demand for their products c. The bundle has a more elastic demand than individual goods d. The bundle has a more inelastic demand than individual goods
According to recent research, the gas tax in the United States is lower than the optimal level
a. True b. False Indicate whether the statement is true or false