The Area Above the Market Supply Curve and Below the Market

question 17

Multiple Choice

The area above the market supply curve and below the market price

• A)is equal to the total amount of producer surplus in a market.
• B)is equal to the marginal cost of the last unit produced.
• C)is equal to the total amount of economic surplus in a market.
• D)is equal to the total cost of production.

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Definitions:

Incentive System

A structured plan designed to motivate and encourage specific behaviors or actions among a group of people or employees.

Profit Sharing

A form of compensation whereby a percentage of company profits is distributed to the employees whose work helped generate them.