In an unregulated, competitive market producer surplus exists ...

[dakota nelson]

In an unregulated, competitive market producer surplus exists because some
 
  A) consumers are willing to pay more than the equilibrium price.
  B) producers are willing to take more than the equilibrium price.
  C) producers are willing to sell at less than the equilibrium price.
  D) consumers are willing to purchase, but only at prices below equilibrium price.

Question 2

When Joe maximizes utility, he finds that his MRS of X for Y is greater than Px/Py. It is most likely that:
 
  A) Joe's preferences are incomplete.
  B) Joe's preferences are irrational.
  C) Joe is not consuming good X.
  D) Joe is not consuming good Y.

[maya.nigrin17@yahoo.com]

Answer to Question 1

C

Answer to Question 2

D