Template Quiz

What is meant by the term margin?

If the price of inputs increases:

A market is considered to be in "equilibrium" when marginal benefit is equal to marginal cost.

What is true about point E*?

The additional benefit to a consumer from consuming one more unit of a good or service is called [blank_start]marginal benefit[blank_end]. The additional cost to a firm of producing one more unit of a good or service is called [blank_start]marginal cost[blank_end]. A legally determined maximum price that sellers may charge is called a [blank_start]price ceiling[blank_end]. A legally determined minimum price that sellers may receive is called a [blank_start]price floor[blank_end]. The difference between the highest price a consumer is willing to pay and the price the consumer actually pays is called [blank_start]consumer surplus[blank_end]. The difference between the lowest price a firm would be willing to accept and the price it actually receives is called [blank_start]producer surplus[blank_end]. The reduction in economic surplus resulting from a market not being in competitive equilibrium is called [blank_start]deadweight loss[blank_end].