Producer surplus in a perfectly competitive industry is A) the ...

[KimWrice]

Producer surplus in a perfectly competitive industry is
 
  A) the difference between profit at the profit-maximizing output and profit at the profit-minimizing output.
  B) the difference between revenue and total cost.
  C) the difference between revenue and variable cost.
  D) the difference between revenue and fixed cost.
  E) the same thing as revenue.

Question 2

Increasing returns to scale in production means
 
  A) more than 10 as much of all inputs are required to increase output 10.
  B) less than twice as much of all inputs are required to double output.
  C) more than twice as much of only one input is required to double output.
  D) isoquants must be linear.

[kilada]

Answer to Question 1

C

Answer to Question 2

B