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:

Economic Gains

Increases in wealth or resources, often measured in terms of profit or improved well-being resulting from economic activities.

Earmark

Funds that are set aside by a legislative body for specific purposes.

Public Art Museum

A museum dedicated to preserving and exhibiting artworks for the public, often funded and operated by governmental or nonprofit entities.

Unfunded Liability

is a financial obligation that does not have sufficient funds set aside to pay for the future benefits, commonly associated with pensions and retirement benefits.