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:

Retrieval Cues

Stimuli or signals that can trigger the recall of information from memory.

Proactive Interference

The phenomenon where old memories make it more difficult to remember new information.

Encoding Specificity

The principle that recall is more effective if the context at the time of encoding matches the context at the time of retrieval.

Retroactive Interference

A memory phenomenon where new information hinders the ability to recall older information.