____ Do Not Normally Function Unless the Car Has Been

question 20

Multiple Choice

____ do not normally function unless the car has been driven in extremely rough conditions or if the shock absorbers are worn out.

• A)Brake lines
• B)Hypoid gears
• C)Rubber bump stops
• D)Cylinders

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Definitions:

Producer Surplus

The difference between the actual price a producer receives (or producers receive) and the minimum acceptable price; the triangular area above the supply curve and below the market price.

Purely Competitive Market

A market structure characterized by a large number of small firms, identical products, and free entry and exit, which leads to firms being price takers.

Long-run Equilibrium

A state in which all firms in an industry are making normal profit, with no incentive for new firms to enter or existing firms to leave the market.

Producer Surplus

The difference between what producers are willing to accept for a good or service and the actual price they receive, representing economic gain.