The price of a shirt is $20. Charlie can produce a shirt at a marginal cost of $10, Mac can produce a shirt for $18, and Dennis can produce a shirt for $22. For a shirt, Deandra has a marginal benefit of $25. Frank has marginal benefit of $20, and Artemis has a marginal benefit of $18. Which of the following statements is correct? The sum of consumer surplus is $5 and the sum of producer surplus is $12. The sum of producer surplus is $10. Only Frank and Artemis will purchase a shirt. The sum of consumer surplus is $12. Only Dennis will produce a shirt.

The price of a shirt is $20. Charlie can produce a shirt at a marginal cost of $10, Mac can produce a shirt for $18, and Dennis can produce a shirt for $22. For a shirt, Deandra has a marginal benefit of $25. Frank has marginal benefit of $20, and Artemis has a marginal benefit of $18. Which of the following statements is correct? The sum of consumer surplus is $5 and the sum of producer surplus is $12. The sum of producer surplus is $10. Only Frank and Artemis will purchase a shirt. The sum of consumer surplus is $12. Only Dennis will produce a shirt.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter24: Perfect Competition

Section: Chapter Questions

Problem 10E

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