« previous next »

Author Question: Producer surplus is the sum of the profits earned by all firms in a market. Indicate whether the ... (Read 60 times)

pepyto

  • Hero Member
  • *****
  • Posts: 547
on: Jul 1, 2018
Producer surplus is the sum of the profits earned by all firms in a market.
 
  Indicate whether the statement is true or false

Question 2

Changes in a firm's profit induce ________ in the producer surplus (PS).
 
  A) identical changes
  B) smaller changes
  C) larger changes
  D) no changes
Microeconomics ¦ Perloff ¦ 8th Edition
Buy Test-Bank


lorealeza77

  • Sr. Member
  • ****
  • Posts: 356
Reply #1 on: Jul 1, 2018
Answer to Question 1

False. This definition ignores fixed costs. Producer surplus minus fixed costs equals profits.

Answer to Question 2

A


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Each year in the United States, there are approximately six million pregnancies. This means that at any one time, about 4% of women in the United States are pregnant.

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Did you know?

Bacteria have flourished on the earth for over three billion years. They were the first life forms on the planet.

Did you know?

Human kidneys will clean about 1 million gallons of blood in an average lifetime.

Did you know?

You should not take more than 1,000 mg of vitamin E per day. Doses above this amount increase the risk of bleeding problems that can lead to a stroke.

This girl ran four spinning machines in a cotton mill in Whitnel, North Carolina. Only 4 feet, 3 inc This girl ran four spinning machines in a cotton mill in Whitnel, North Carolina. Only 4 feet, 3 inc
Main Hall, Trajan's Market Main Hall, Trajan's Market
Economic objectives of firms Economic objectives of firms
Competitive firms and maximization Competitive firms and maximization
Markets and Institutions Market Story Problem Markets and Institutions Market Story Problem
A portfolio earned -13%, 18%, 5%, 24%, and -5% in five successive years. What was the ... A portfolio earned -13%, 18%, 5%, 24%, and -5% in five successive years. What was the ...
Video: Buffers definition and the role of buffer in the body

For a complete list of videos, visit our video library