An Individual Seller's Producer Surplus on a Unit of a Good

question 51

Multiple Choice

An individual seller's producer surplus on a unit of a good is

• A)zero in perfect competition
• B)zero in monopoly
• C)greater than the buyer's consumer surplus on that unit
• D)an example of a side payment
• E)the difference between the price the seller receives and the cost of producing that unit.

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Definitions:

Price Discrimination

Price discrimination refers to the strategy of selling the same product at different prices to different groups of customers, based on their willingness to pay.

Sherman Antitrust Act

A landmark federal statute in the United States passed in 1890 which prohibits certain business activities that federal government regulators deem to be anti-competitive.

Restraints of Trade

Legal or economic restrictions placed on the free exchange or movement of goods, services, or labor, often to maintain fair competition or prevent monopolistic practices.

Sherman Antitrust Act

A landmark federal statute in the U.S. passed in 1890 that prohibits monopolistic business practices and promotes competition in the marketplace.