An Individual Seller's Producer Surplus on a Unit of a Good

question 51

Multiple Choice

An individual seller's producer surplus on a unit of a good is

• A)zero in perfect competition
• B)zero in monopoly
• C)greater than the buyer's consumer surplus on that unit
• D)an example of a side payment
• E)the difference between the price the seller receives and the cost of producing that unit.

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Definitions:

Utility

In economics, a measure of satisfaction or happiness that individuals get from consuming goods and services.

Time Utility

The value added to products or services by making them available at the right time to meet consumer needs.

Multitouch

A technology that enables a surface (such as a touchscreen) to recognize the presence of more than one point of contact with the surface simultaneously.

Goodwill

The intangible asset that arises when a business is acquired for more than the fair value of its visible, tangible assets; often related to the brand reputation, customer loyalty, and other factors not directly quantifiable.