Producer surplus is the:
A) sum of a seller's reservation value and the price he finally receives.
B) difference between a seller's reservation value and the price he finally receives.
C) product of a seller's reservation value and the price he finally receives.
D) ratio of a seller's reservation value to the price he finally receives.
B
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If ________, total efficiency units of labor will increase
A) firms hire more workers B) the number of retired people in an economy increases C) the capital stock of an economy decreases D) the rate of unemployment increases
Assuming a fixed amount of taxes and a closed economy, calculate the value of the government purchases multiplier, the tax multiplier, and the balanced budget multiplier if the marginal propensity to consume equals 0.75
What will be an ideal response?