In the Long Run, a Firm's Producer Surplus Is Equal

question 49

Multiple Choice

In the long run, a firm's producer surplus is equal to the:

• A) economic rent it enjoys from its scarce inputs.
• B) revenue it earns in the long run.
• C) positive economic profit it earns in the long run.
• D) difference between total revenue and total variable costs.
• E) difference between total revenue and total fixed costs.

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Definitions:

Critical Thinking Skill

The ability to objectively analyze and evaluate an issue in order to form a judgment.

Nonpharmacological

Refers to treatments or interventions not involving medications, often used to complement traditional treatments or manage symptoms.

Pharmacological

Pharmacological pertains to the branch of medicine that focuses on the uses, effects, and modes of action of drugs.

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment.