Let P Represent Price;let Q^S represent Quantity Supplied;and Assume the Equation

question 130

True/False

Let P represent price;let Q^S represent quantity supplied;and assume the equation of the supply curve is .If 90 units of the good are produced and sold,then producer surplus amounts to $1,350.

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Definitions:

Accounting Profits

The difference between total revenue and explicit costs of a business, calculated using principles of accounting.

Economic Profits

The surplus left after total costs (including both explicit and implicit costs) are subtracted from total revenues.

Short-Run Marginal Costs

Costs associated with producing one more unit of a good or service in the short term, where some inputs are fixed.

Market Price

The current price at which an asset or service can be bought or sold in the open market.