The Producer Surplus on a Unit of a Good Is

question 185

Multiple Choice

The producer surplus on a unit of a good is

• A) equal to the marginal benefit from the good minus its price.
• B) equal to the price of the good minus the marginal cost of producing it.
• C) always equal to consumer surplus.
• D) Both answers A and C are correct.
• E) Both answers B and C are correct.

---

Definitions:

Correlation Coefficient

A statistical measure that describes the size and direction of a relationship between two variables, ranging from -1 to +1.

Behaviorism

A theory of learning based on the idea that all behaviors are acquired through conditioning.

Unconscious Forces

The underlying psychological influences of which we are not aware that affect our thoughts, feelings, and behaviors.

Replication

Repeating a study to see if the effect is reliable.