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:

American Law Institute

The American Law Institute (ALI) is an organization dedicated to producing scholarly work to clarify, modernize, and improve the law, including draft statutes and principles of law.

Restatement of Law

A set of treatises published by the American Law Institute meant to distill and clarify the common law of the United States.

Prohibitory

Pertaining to laws, rules, or regulations that forbid certain actions or behaviors.

Pervasive

Spreading widely throughout an area or group of people, especially of an unwelcome influence or physical effect.