In the short run, producers derive surplus from market exchange because
A) total revenue is greater than the minimum they would require to sell the good
B) total revenue is equal to the minimum amount they would require to sell the good
C) total revenue is less than the minimum amount they would require to sell the good
D) marginal revenue equals average revenue
E) they can rob consumers of most of their consumer surplus
Correct Answer:
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Q1: Long-run expansion in an increasing-cost industry increases
Q2: The term allocative efficiency refers to
A)the level
Q3: The term productive efficiency refers to
A)any short-run
Q5: When an industry supply curve increases enough
Q6: The relationship between price and quantity supplied
Q7: Economic profits in a competitive industry are
Q8: Resources are efficiently allocated when production occurs
Q9: In the short run, producers derive surplus
Q10: A firm that minimizes average cost will
Q11: Compared to the short run, the long-run
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