SS Exploring Economics 3
Consumer surplus and producer surplus
Think it over
Do you know what the antique trader and the lady are doing in the diagrams? Why do they
engage in such activity?
What does the lady gain from buyin
1. Which of the following does NOT imply the existence of firms?
A. Mr Chan owns a small restaurant in Mongkok.
B. Miss Mok sells fruit in the street.
C. Tony makes some ornaments () at home for sale.
D. Mary bakes a small cake for lunch at school.
SS Exploring Economics 2
Profit maximisation and output determination
Does maximisation of market share as measured by unit sales imply maximisation of
market share as measured by dollar sales? Explai