The Difference Between the Market Price of a Good and a Producer's

question 30

Multiple Choice

The difference between the market price of a good and a producer's marginal cost of every unit of the good is called

• A)consumer surplus.
• B)producer surplus.
• C)marginal surplus.
• D)excess supply.
• E)market surplus.

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Definitions:

How Much Decision

Decisions relating to the quantity of goods or services to use, produce, or purchase, typically based on cost-benefit analysis.

Opportunity Cost

In economics, it refers to the benefit lost when choosing one alternative over another.

Mutual Fund

An investment vehicle comprising a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, or other assets.

Explicit Costs

Direct, out-of-pocket expenses incurred in the operation of a business, such as wages, rent, and materials.