Suppose that Tom bought a bike from Helen for $195. If Helen's reservation price was $185, and Tom's reservation price was $215, the total economic surplus from this transaction was:

In the circular flow model, the factors of production flow in the

A) opposite direction as does the goods market. B) opposite direction as does the government. C) same direction as do the rents, wages, interest, and profits. D) opposite direction as do the rents, wages, interest, and profits. E) same direction as does the goods market.

A firm that experiences economies of scale has a ______ average cost curve.

A. positively-sloped B. negatively-sloped C. U-shaped D. flat