Question : 6.3   Cost, Price, and Producer Surplus 1) To a seller, the : 1241542

6.3   Cost, Price, and Producer Surplus

1) To a seller, the cost of a good or service is ________, and the price is ________.

A) what must be given up to produce the good or service; what is received for the good or service

B) what is received for the good or service; what must be given up to produce the good or service

C) the producer surplus the seller receives; the consumer surplus the buyer receives

D) the producer surplus the buyer receives; the consumer surplus the seller receives

E) None of the above answers is correct.

2) Which of the following describes the economic meanings of cost and price?

A) Cost is exchange worth, and price is dollar worth.

B) Cost is what must be given up to produce a good, and price is what a seller receives when the good is sold.

C) They are the same, and they both mean what is received when a good is sold.

D) Cost refers to what the buyers pay for the good, and price refers to what sellers receive when the good is sold.

E) Cost refers to the price that buyers must pay to buy the good.

3) The opportunity cost of producing one more unit of a good or service is the

A) marginal cost.

B) marginal benefit.

C) efficient level of production.

D) market outcome.

E) price of the good or service.

4) The cost of producing one more unit of a good or service is equal to its

A) marginal benefit.

B) producer surplus.

C) marginal expenditure.

D) consumer surplus.

E) marginal cost.

5) Ben’s cost of making an additional rocking chair is $75.

A) If he sells it for a $100, his producer surplus is $25.

B) His marginal cost is equal to $75.

C) The marginal benefit to the consumer from the chair will be $75.

D) Both answers A and B are correct.

E) Both answers B and C are correct.

6) A supply curve is the same as a

A) total cost curve.

B) marginal cost curve.

C) total benefit curve.

D) marginal benefit curve.

E) deadweight loss curve.

7) The supply curve of a good or service is the same as

A) the demand curve.

B) the marginal benefit curve.

C) the marginal cost curve.

D) the total surplus curve.

E) None of the above answers is correct.

8) A point on the supply curve can illustrate the

A) price and the corresponding quantity supplied.

B) marginal cost of that unit of the good.

C) price the consumer is willing to pay.

D) Both answers A and B are correct.

E) Both answers A and C are correct.

9) The supply curve shows the

A) marginal benefit of a firm producing another unit of a good.

B) dollars’ worth of other goods and services we are willing to give up to get another unit of the good.

C) minimum price that firms must receive to supply a certain quantity of a good.

D) producer surplus of producing the good.

E) maximum price that firms will accept in order to supply a certain quantity of a good.

10) A supply curve shows quantities supplied at various prices. It also shows the

A) total profit the firm earns at a given level of output.

B) marginal benefit of the good.

C) total cost of production.

D) marginal cost of production.

E) producer surplus, which is equal to the slope of the supply curve.