Market for Asparagus

question 29

Multiple Choice

Market for asparagus.At the market price of $2, area A represents:

• A)total consumer utility.
• B)total revenue to sellers.
• C)consumer surplus.
• D)economic profit.

---

Definitions:

Isocost Line

A graph that shows all combinations of inputs that cost the same total amount for a firm.

Optimal Combination

The most efficient allocation or selection of resources and inputs to maximize output or satisfaction.

Isoquant

A curve that shows all the combinations of inputs that produce the same level of output, used in the study of production theory.

Isocost Line

A graph representing all combinations of a firm's inputs that result in the same total cost.