consumer surplus
What will be an ideal response?
-The difference between the maximum amount consumers would be willing to pay and the amount that they actually pay.
-is the area below the demand curve but above the price.
-represents the net gains to buyers from market exchange.
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By forming a cartel the member firms can actually raise their profits
a. True b. False Indicate whether the statement is true or false
Answer the following questions true (T) or false (F)
1. The sales revenue a seller receives from the sale of an additional unit of goods is called the marginal benefit. 2. Optimal decisions are made at the point where marginal cost equals zero. 3. If it costs Sinclair $300 to produce 3 suede jackets and $420 to produce 4 suede jackets, then the difference of $120 is the marginal cost of producing the 4th suede jacket.