« previous next »

Author Question: Producer surplus is the sum of the profits earned by all firms in a market. Indicate whether the ... (Read 13 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?

Oliver Wendell Holmes is credited with introducing the words "anesthesia" and "anesthetic" into the English language in 1846.

Did you know?

Asthma occurs in one in 11 children and in one in 12 adults. African Americans and Latinos have a higher risk for developing asthma than other groups.

Did you know?

There are major differences in the metabolism of morphine and the illegal drug heroin. Morphine mostly produces its CNS effects through m-receptors, and at k- and d-receptors. Heroin has a slight affinity for opiate receptors. Most of its actions are due to metabolism to active metabolites (6-acetylmorphine, morphine, and morphine-6-glucuronide).

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates's recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

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
Spike Lee (director and producer), When the Levees Broke: A Requiem in Four Acts. Spike Lee (director and producer), When the Levees Broke: A Requiem in Four Acts.
Reconstruction Drawing of Trajan's Market Reconstruction Drawing of Trajan's Market
Hydroelectric power: 2013 Global Market Hydroelectric power: 2013 Global Market
A car wash reduced the price of a basic wash as a promotion and test of the market. With the ... A car wash reduced the price of a basic wash as a promotion and test of the market. With the ...
Juan's Software Service Company is in a perfectly competitive market. Juan has total fixed ... Juan's Software Service Company is in a perfectly competitive market. Juan has total fixed ...
Video: Chronology of leptin research (A history of leptin research)

For a complete list of videos, visit our video library