Author Question: Producer surplus is measured as the A) area under the demand curve above market price. B) ... (Read 153 times)

jasdeep_brar · **on:** Jul 1, 2018

Producer surplus is measured as the

A) area under the demand curve above market price.
B) entire area under the supply curve.
C) area under the demand curve above the supply curve.
D) area above the supply curve up to the market price.

Question 2

The price of lemonade is 0.50; the price of popcorn is 1.00. If Fred has maximized his utility by purchasing lemonade and popcorn, his marginal rate of substitution will be:

A) 2 lemonades for each popcorn.
B) 1 lemonades for each popcorn.
C) 1/2 lemonade for each popcorn.
D) indeterminate unless more information on Fred's marginal utilities is provided.