Charlene Is Willing to Pay $5

question 119

Multiple Choice

Charlene is willing to pay $5.00 for a sandwich.If the price of a sandwich is ________,Charlene ________.

• A)$4.00;does not receive any consumer surplus
• B)$4.00;receives a consumer surplus of $1
• C)$6.00;receives a consumer surplus of $1
• D)$4.00;receives a consumer surplus of $4
• E)$4.00;receives a producer surplus of $1

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Definitions:

Capitalistic Firm

A business entity operating in a capitalist economy, where the means of production are privately owned and operated for profit.

Marxian Inputs

Factors of production (labor, capital, etc.) as analyzed in Marxist economic theory, focusing on their exploitation and role in generating surplus value.

Production Function

A quantitative model that demonstrates how the inputs in the production process impact the goods or services output.

Supply Function

A mathematical expression that shows the relationship between the quantity of a good or service that producers are willing to sell and the price of the good or service.