Consumer surplus is the difference between what a consumer is willing to pay and what they actually pay for a good or service. ... The producer surplus is the difference between the actual price of a good or service–the market price–and the lowest price a producer would be willing to accept for a good. Given the following information, calculate both the producer and consumer surplus a. P- 140 = - .5q b. MC = 10 + 4q
Consumer surplus is the difference between what a consumer is willing to pay and what they actually pay for a good or service. ... The producer surplus is the difference between the actual price of a good or service–the market price–and the lowest price a producer would be willing to accept for a good. Given the following information, calculate both the producer and consumer surplus a. P- 140 = - .5q b. MC = 10 + 4q
Chapter4: Prices: Free, Controlled, And Relative
Section: Chapter Questions
Problem 4WNG
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- Consumer surplus is the difference between what a consumer is willing to pay and what they actually pay for a good or service. ... The
producer surplus is the difference between the actualprice of a good orservice–the market price–and the lowest price a producer would be willing to accept for a good.
Given the following information, calculate both the producer and consumer surplus
a. P- 140 = - .5q
b. MC = 10 + 4q
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