On a Graph, _____ Surplus Is Measured as the Space

question 104

Multiple Choice

On a graph, _____ surplus is measured as the space between the supply curve and equilibrium price line.

• A) consumer
• B) producer
• C) total
• D) business

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Definitions:

Long Run

In economics, a period in which all inputs, including capital, can be fully adjusted, allowing firms to change their scale of operation.

Economic Profit

An economic profit occurs when the revenue generated from a business activity exceeds both the explicit and implicit costs associated with that activity.

Monopolistically Competitive

In a monopolistically competitive market, many firms sell products that are similar but not identical, allowing for competition based on quality, price, and branding.