Farmer Jones knows that the marginal cost to produce a bushel of tomatoes is $5 per bushel. He also knows that a consumer is willing to pay a maximum of $9 for the bushel. The price of the bushel is $6 and Farmer Jones sells his bushel for $6
On this bushel, Farmer Jones earns a producer surplus equal to A) $1.
B) $3.
C) $5.
D) $6.
A
Economics
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What does a "fractional reserve banking system" mean?
(A) One that must keep most deposited money in reserve. (B) One that uses fractional paper currency as well as coins. (C) One that keeps only a small part of customers' deposits on hand. (D) One that is required to report daily deposits to the Federal Reserve.
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Intellectual property rights provided by patent systems typically ________
A) provide tax incentives to encourage research and development B) allow for the depreciation of capital C) compensate the government for building infrastructure D) last about twenty years
Economics