Consumer Surplus Is Shown Graphically as the Area

question 81

Multiple Choice

Consumer surplus is shown graphically as the area:

• A) under the demand curve and above the market price.
• B) under the demand curve and below the market price.
• C) above the supply curve and above the market price.
• D) above the supply curve and below the market price.

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Definitions:

Average Costs

The total cost of production divided by the number of goods produced, representing the cost per unit of output.

Diseconomies of Scale

The situation in which a firm's long-run average costs begin to increase as the firm expands output beyond a certain point.

Student Enrollment

The process by which students register for and commit to participating in educational programs or courses at an institution.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the number of units produced.