_ 34. Producer surplus from a unit of output is the difference between the marke
ID: 1237455 • Letter: #
Question
_ 34. Producer surplus from a unit of output is the difference between the market price and the seller's cost of producing that unit.____ 35. When positive externalities are present, it leads to an underallocation of resources in that area relative to that which is socially desirable.
____ 36. If the price elasticity of demand coefficient equals 2, this means a 10 percent increase in price will result in a 20 percent decrease in the quantity demanded.
____ 37. The principle of diminishing marginal returns says that as more and more units of a variable resource are added to a set of fixed resources, the resulting additions to output will become increasingly smaller and, eventually, larger.
Explanation / Answer
T,T,F,T
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.