Producer Surplus Is Equal to

question 34

Multiple Choice

Producer surplus is equal to

• A) the area under the supply curve.
• B) the difference between price and average cost for all units sold.
• C) the difference between price and marginal cost for all units sold.
• D) the firm's profit when fixed costs exist.

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Definitions:

Iconic Memory

The visual sensory memory register pertaining to the visual domain and a fast-decaying store of visual information.

Sensory Memory

The shortest-term element of memory, allowing the retention of impressions of sensory information after the original stimuli have ended.

Working Memory

A mental system of restricted capability accountable for momentarily retaining data for processing purposes.

Overextension

A language development error wherein a child applies a word too broadly to objects that do not fit the word's meaning.