The Producer Surplus on a Unit of a Good Is

question 403

Multiple Choice

The producer surplus on a unit of a good is the

• A) difference between the marginal social benefit and the marginal social cost.
• B) number of dollars' worth of other goods and services forgone to produce this unit of the good.
• C) difference between the price of the good and the marginal cost of producing the good.
• D) difference between the total cost of the good and the marginal cost.

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Definitions:

Level 2 Input

In fair value measurement, inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly, such as using market-correlated data.

Level 2 Input

Inputs other than quoted market prices included within Level 1 that are observable for the asset or liability, directly or indirectly, such as quoted prices for similar assets or liabilities.

Interest Rates

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the outstanding loan.

Yield Curves

Graphs showing the relationship between interest rates and the time to maturity of debt securities.