Consumer surplus in a market for a product would be equal to the area under the demand curve if A) producer surplus was equal to zero. B) marginal cost was equal to the market price. C) the product was produced in a perfectly competitive market. D) the market price was zero.
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I think the answer to this question is B but I am not sure, I think it could also be C.
Consumer surplus in a market for a product would be equal to the area under the
A)
B) marginal cost was equal to the market
C) the product was produced in a
D) the market price was zero.
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- Question 11 In a graph, market producer surplus is equal to what area? Question 11 options: a) The area below the demand curve but above price. b) The area between the demand and supply curves. c) The area below the demand curve but above the x-axis. d) The area above the supply curve but below price e. The area below the supply curve but above the x-axis. e) The area below the supply curve but above the x-axis. Question 12 Which of the following is the definition of a deadweight loss? Question 12 options: a) A reduction in social welfare due to equity considerations. b) A reduction in social well-being due to equity considerations. c) A reduction in social welfare due to…The area under the demand curve but above the equilibrium price is called: a) consumer surplus. b)producer surplus. c)accounting profit. d)economic profit.If producers are willing to sell 20 cans of soda at a total price of 10 and a local restaurant offers to pay 16, then producer surplus is equal to
- Consider a market for fountain pens. Suppose the ink (complement for fountain pens) becomes more expensive. What is going to happen to producer surplus on the fountain pens market? Producer surplus will increase Producer surplus will decrease Producer surplus will stay the same Change in producer surplus will be ambiguousProducer surplus is defined as options: 1-The area above MC and above the price of output 2-The area below supply and above the price of output 3-The area above AVC and below ATC 4-The area below the market price of output and above supplyProduct K generates consumer surplus of £100, has a price of £100 and costs £50 to produce. Product L generates consumer surplus of £100 to the consumer and has a price of £74. In this case: a. Product L has competitive advantage over product K. b. The answer depends on L's cost. c. Neither product has a competitive advantage over the other. d. Product K has competitive advantage over product L.
- Calculate the consumer surplus at the market equilibrium price. Calculate the producer surplus at the market equilibruim price. Calculate the total surplus at the market equilibruim price. At what price will the total surplus be maximized in this market. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.What happens to the amount of consumer surplus and producer surplus when the supply of scarves suddenly declines (shifts left)? Group of answer choices Consumer surplus is unchanged and producer surplus is unchanged. Consumer surplus declines and producer surplus is unchanged. Producer surplus increases and consumer surplus increases. Producer surplus declines and consumer surplus is unchanged. Consumer surplus declines and producer surplus declines.area representing consumer surplus, and use the purple point (diamond symbol) to fill the area representing producer surplus. Total surplus in this market is million. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- which statement is correct Moving production from a high-cost producer to a low-cost producer will decrease total surplus. Suppose the United States changed its laws to allow for the legal sale of a kidney and the government allowed a free market in organs for transplant then there would be a decrease in the price of a kidney and an increase in the shortage of kidneys for transplant. Total surplus in the market is the summation of consumer surplus and producer surplus and it is maximized at the market equilibrium in the absence of market power and externalities. If a good is not being produced by sellers with the lowest cost, then the market reflects inefficiency in the allocation of resources. Welfare economics deals with how the allocation of resources affects economic well-being. The willingness to pay is a measure of how much the buyer values the good. The marginal seller is the seller who would leave the market first if the price were any higher.If marginal benefit is equal to marginal cost, then the: A. sum of producer surplus and consumer surplus equals zero. B. market has squeezed out total surplus so that it equals zero. C.sum of producer surplus and consumer surplus is as large as possible. D.producer surplus is equal to the consumer surplus.Assume that a firm is willing to sell its product for at least 100 TL and the going price for that product is 150 TL in the market. Then what is the producer surplus of this firm for each product sold? A. 100 TL B. 0 TL C. 150 TL D. 250 TL E. 50 TL