In an Unregulated, Competitive Market Producer Surplus Exists Because Some

question 149

Multiple Choice

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.

---

Definitions:

Inventory Investment

The net change in physical inventory levels for businesses over a certain period, indicating how much companies are spending to stock goods.

Inventory

The complete quantity of products and materials kept in inventory by a company, meant for sale or to be used in manufacturing.

Interest Rate

The piece of a loan that accumulates interest for the borrower, often specified as a yearly percentage of the loan's existing outstanding balance.

Marginal Efficiency

Marginal efficiency refers to the rate of return or profit expected from an additional unit of investment.