Producer surplus is the: A) sum of a seller's reservation ...

[pragya sharda]

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.

Question 2

Which of the following is an important difference between police protection and food and explains why one is commonly provided by government while the other is not?
 
  A) Food can easily be withheld from people who don't pay for it.
  B) Food is not a traditional concern of government.
  C) Food is too vital to be entrusted to government.
  D) Food producers form a powerful political lobby.
  E) Food provided through government would be inefficient.

[Amiracle]

Answer to Question 1

B

Answer to Question 2

A

[pragya sharda]

Thanks for the timely response, appreciate it

[skipfourms123]

YES! Correct, THANKS for helping me on my review