The Producer Surplus on a Unit of a Good Is

question 185

Multiple Choice

The producer surplus on a unit of a good is

• A) equal to the marginal benefit from the good minus its price.
• B) equal to the price of the good minus the marginal cost of producing it.
• C) always equal to consumer surplus.
• D) Both answers A and C are correct.
• E) Both answers B and C are correct.

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Definitions:

Variance

A measure of the dispersion of a set of values, calculated as the average of the squared deviations from the mean.

Computational Formula

Formula that is an algebraic manipulation of a definitional formula designed to minimize the complexity of mathematical calculations.

Variance

The average of the squared differences from the Mean, a statistical measurement of the spread between numbers in a data set.

Computational Formula

A formula used to compute statistical measures that often simplifies the arithmetic process.