At Rick’s Trailer Trove, Rick’s buddy Theodore convinces him to extend production of trailers beyond the current production level in order to gain more producer surplus. This strategy will work if ______.
a. current production exceeds the equilibrium point
b. current production is at the equilibrium point
c. the cost of the additional output exceeds what the buyers will pay for it
d. the cost of the additional output is less than what the buyers will pay for it
d. the cost of the additional output is less than what the buyers will pay for it
You might also like to view...
The relationship between the level of saving and the level of consumption is called the savings function
Indicate whether the statement is true or false
When scarce goods are allocated according to some generally known criteria,
A) no one is discriminated against as long as the criteria are socially and legally accepted. B) people will compete to satisfy the criteria. C) rationing of scarce goods becomes unnecessary. D) surpluses almost inevitably appear.