Let P Represent Price; Let QS Represent Quantity Supplied; and Assume

question 363

True/False

Let P represent price; let QS represent quantity supplied; and assume the equation of the supply curve is
If 90 units of the good are produced and sold, then producer surplus amounts to $1,350.

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Definitions:

Perfect Competitor

A market participant that cannot influence the market price and must take it as given because the market is perfectly competitive.

Short Run

A period in economic theory during which at least one input, such as plant size or the number of firms in the industry, is fixed and cannot be changed.

Perfect Competitor

A theoretical market structure in which many firms sell an identical product, and no single buyer or seller can influence the market price.

Perfectly Competitive Industry

A market structure where many firms sell identical products, entry and exit are easy, and no single buyer or seller can affect the market price.