Which of the Following Expressions Can Be Used to Calculate

question 44

Multiple Choice

Which of the following expressions can be used to calculate the producer surplus (PS) ?

• A) PS = profit * output
• B) PS = profit + fixed cost
• C) PS = variable cost - fixed cost
• D) PS = average cost * output

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Definitions:

Ordinal

A type of data or scale that shows an ordered relationship among the variable's possible values, but does not specify the magnitude of difference between them.

Nominal

Referring to data classified into categories without a natural order or ranking among the categories.

Interval Data

A type of data that consists of numerical scores that exist on a scale with equal intervals between values but no true zero point.

Nominal Data

Categorical data that cannot be ordered or ranked in a meaningful way.