Which Is FALSE? When the Price of Oil Is Below

question 81

Multiple Choice

Which is FALSE? When the price of oil is below equilibrium

• A) consumers, as a group, are better off.
• B) producers, as a group, are worse off.
• C) total surplus falls.
• D) there is a deadweight loss.

---

Definitions:

Economic Resources

Assets or inputs that contribute to the production of economic goods, including land, labor, capital, and entrepreneurship.

Economic Profits

Profits calculated by subtracting both explicit and implicit costs from total revenue, capturing the true economic value created.

Opportunity Costs

A concept in economics that describes the potential benefits that an individual, investor, or business misses out on when choosing one alternative over another.

ATC

Average Total Cost is the sum of all production costs divided by the quantity of output produced.