CONSUMERS, PRODUCERS. AND MARKET EFFICIENCY Use the graph below to answer questions 1 through 6. Price ($) 20 Supply 15 10 7.50 Demand 20 40 60 80 Quantity The marginal benefit of the 20th unit is and the marginal cost of the 20th unit is $15; $7.50 $5; $5 1. $7.50; $15 $10; $10 -a. C. b. d. 2. The marginal benefit of the 40th unit is and the marginal cost of the 40th unit is $7.50; $15 $10; $10 $15; $7.50 $5; $5 a. c. (b. d. 3. If the price of this product is $10 per unit, consumers will purchase units and consumer surplus will equal $ 20; 50 a. ъ 20; 200 C. 40; 50 d. 40; 200 If the price of this product is $10 per unit, firms will sell will equal $ 20; 25 units and producer surplus b. 20; 100 40; 25 d. 40; 100 a. C. 5. The efficient level of output is units because marginal benefit (MB) equals at this output level and the sum of consumer and producer surplus is 40; MC; maximized 20; 40; maximized 40; 40; 0 20; MC; 0 a. c. b. d. If the quantity exchanged in this market is limited to 20 units, the resulting deadweight loss is equal to: $50. 6. a. b. $75. C. $100. d. $150. 127 Chapter 6 Assign 4.

CONSUMERS, PRODUCERS. AND MARKET EFFICIENCY Use the graph below to answer questions 1 through 6. Price ($) 20 Supply 15 10 7.50 Demand 20 40 60 80 Quantity The marginal benefit of the 20th unit is and the marginal cost of the 20th unit is $15; $7.50 $5; $5 1. $7.50; $15 $10; $10 -a. C. b. d. 2. The marginal benefit of the 40th unit is and the marginal cost of the 40th unit is $7.50; $15 $10; $10 $15; $7.50 $5; $5 a. c. (b. d. 3. If the price of this product is $10 per unit, consumers will purchase units and consumer surplus will equal $ 20; 50 a. ъ 20; 200 C. 40; 50 d. 40; 200 If the price of this product is $10 per unit, firms will sell will equal $ 20; 25 units and producer surplus b. 20; 100 40; 25 d. 40; 100 a. C. 5. The efficient level of output is units because marginal benefit (MB) equals at this output level and the sum of consumer and producer surplus is 40; MC; maximized 20; 40; maximized 40; 40; 0 20; MC; 0 a. c. b. d. If the quantity exchanged in this market is limited to 20 units, the resulting deadweight loss is equal to: $50. 6. a. b. $75. C. $100. d. $150. 127 Chapter 6 Assign 4.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter12: Environmental Protection And Negative Externalities

Section: Chapter Questions

Problem 8SCQ: Four films called Elm, Maple, Oak, and (Shelly, produce wooden chairs. However, they also produce a...

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