Multiple Choice
Which best describes consumer surplus?
A) the price consumers are willing to pay for a unit
B) the cost of providing a unit
C) the profits made by a firm
D) the difference between the price a consumer pays for an item and the price he/she is willing to pay for it
Correct Answer:
Verified
Correct Answer:
Verified
Q1: Asymmetric information occurs when:<br>A)information is free<br>B)buyers and
Q2: There are strong theoretical reasons to expect
Q3: A positive consumption externality occurs when:<br>A)the social
Q4: A situation where people who have taken
Q6: Monopoly power in a market is likely
Q7: If, for John's current intertemporal consumption pattern
Q8: Community surplus equals:<br>A)producer surplus minus consumer surplus<br>B)profits
Q9: An insurance company can protect itself from
Q10: A public good will probably:<br>A)be expensive in
Q11: A demerit good:<br>A)is a public good<br>B)involves a