Suppose There Are Four Firms That Are Each Willing to Sell

question 132

Multiple Choice

Suppose there are four firms that are each willing to sell one unit of a good. Each firm has a different minimum price that they are willing to sell for: Firm A, $6; Firm B, $7; Firm C, $10; and Firm D, $12. If the market price is $11 then the total producer surplus is

• A) $33.
• B) $11.
• C) $9.
• D) $10.

---

Definitions:

Regression Equation

A mathematical equation that allows prediction of one behavior when the score on another variable is known.

Predict

To declare or indicate a likely occurrence or outcome in the future based on current knowledge or analysis.

Relationship

The way in which two or more concepts, objects, or people are connected, or the state of being connected.

Effect Size

A quantitative measure of the magnitude of the experimental effect, indicating the practical significance of the results.