Use the Figure Below to Answer the Following Questions

question 33

Multiple Choice

Use the figure below to answer the following questions. Figure 10.4.1
-Refer to Figure 10.4.1 which shows the total product curves for four different plant sizes as Tania's Teapots varies the quantity of capital and workers.The curve that represents the plant using the largest amount of capital is

• A)plant A.
• B)plant B.
• C)plant C.
• D)plant D.
• E)all curves because each plant uses the same number of machines,just different amounts of labour.

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Definitions:

Consumer Surplus

The gap between the total sum consumers can and will pay for a good or service versus what they actually spend.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, measured above the supply curve.

Market Equilibrium

Market equilibrium occurs when the quantity demanded by consumers perfectly matches the quantity supplied by producers, resulting in no excess supply or demand within the market.

Price

The financial value forecasted, demanded, or handed over as compensation for an item.