An individual seller's producer surplus on a unit of a good is
a. zero in perfect competition
b. zero in monopoly
c. greater than the buyer's consumer surplus on that unit
d. an example of a side payment
e. the difference between the price the seller receives and the cost of producing that unit.
E
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Which of the following would most likely be a private good?
A) a Mariah Carey CD B) Sirius Satellite Radio is accessed through a subscription. C) Michigan Radio is the state's most listened-to public radio service. D) iTunes sells songs through their website.
Which of the following statements is true about purchasing power parity (PPP)?
a. PPP is the normal state between two nations because international markets are perfectly competitive. b. PPP is the normal state between two nations because of government regulations and central bank intervention. c. PPP is the normal state between two nations because interest rates, the spot exchange rate, and the forward exchange rate all adjust to create this condition. d. PPP is the normal state between two nations because arbitrageurs take advantage of any imbalances. e. PPP is rarely the case for most nations in the short-run, but exchange rates tend to move in the direction of PPP in the long run.