When the Price of a Product Exceeds the Marginal Cost

question 29

Multiple Choice

When the price of a product exceeds the marginal cost of producing it,producers have a

• A) consumer surplus.
• B) producer surplus.
• C) consumer shortage.
• D) producer shortage.
• E) deadweight surplus.

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Definitions:

Chronic Disease

Long-lasting medical conditions that are generally progressive and may require ongoing treatment and management.

Body Fat

The portion of the human body composed of fat tissue, which serves as energy storage, insulation, and protection of organs.

Crystallized Intelligence

Those types of intellectual ability that reflect accumulated learning. Vocabulary and general information are examples. Some developmental psychologists think crystallized intelligence increases with age, while fluid intelligence declines.

Accumulation

The gradual gathering or collecting of items, substances, or wealth over time.