13. There are two types of consumers buying VR (Virtual Reality) systems. The demand from the first type is given by q(p) = 10 – p, while the demand for the second type is given by q(p) = 20 – p. With the current technology, there is a constant marginal cost C of producing these systems. If total welfare is 50, which statement is incorrect about the competitive equilibrium? (a) There are 10 VR sets produced and consumed. (b) Only the second type of consumer buys these systems. (c) Producer surplus is cqual to 0. (d) The competitive equilibrium price is 5. 14. (Continued from previous question) Assume the technology improves and the marginal cost goes down to 8. What is total welfare in the competitive equilibrium? (a) 74 (b) 72 (c) 4 (d) 2

13. There are two types of consumers buying VR (Virtual Reality) systems. The demand from the first type is given by q(p) = 10 – p, while the demand for the second type is given by q(p) = 20 – p. With the current technology, there is a constant marginal cost C of producing these systems. If total welfare is 50, which statement is incorrect about the competitive equilibrium? (a) There are 10 VR sets produced and consumed. (b) Only the second type of consumer buys these systems. (c) Producer surplus is cqual to 0. (d) The competitive equilibrium price is 5. 14. (Continued from previous question) Assume the technology improves and the marginal cost goes down to 8. What is total welfare in the competitive equilibrium? (a) 74 (b) 72 (c) 4 (d) 2

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter10: Monopolistic Competition And Oligopoly

Section: Chapter Questions

Problem 16CTQ: Would you rather have efficiency or variety? That is, one opportunity cost of the variety of...

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