Question 1 The table below shows the marginal costs of the last croissant produced by four different bakeries. Assume that any bakery willing to sell croissants at the market price sells 100 croissants and that all bakeries have the same costs. How much producer surplus is earned in this market at a price of $3.00 Question 1 options: a) $100 b) $0 c) $1 d) $75 e) $200 Question 2 Use the graph below to answer the following question: What happens to consumer surplus if the price decreases from $8 to $5? Question 2 options: a) It increases by $18 b) It increases by $3 c) It increases by $21 d) It remains constant at $25 e) It increases by $16 Question 3 Question 3 options:The difference between a consumer's maximum willingness to pay for something and price is known as . Question 4 Question 4 options:The area above the supply curve but below price is known as . Question 5 Answer as either True or False. If the answer is false, explain why it is false.Suppose Regina is willing to pay $50 for a particular pair of shoes. The price of the shoes is $30. If she purchases the shoes, she would obtain a consumer surplus of $20. P,10-9+8-7-6+5-D3+2+1 2 3 4 5 6 7 8 9 10 11 12 134, BakeryMarginal Cost$2.25AB$2.75$3.00D$3.25

Each bakery is ready to sell the 100 units of the good. So the produce surplus of a bakery will be…

Answered: The table below shows the marginal…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 1

The table below shows the marginal costs of the last croissant produced by four different bakeries. Assume that any bakery willing to sell croissants at the market price sells 100 croissants and that all bakeries have the same costs.

How much producer surplus is earned in this market at a price of $3.00

Question 1 options:

$100

$75

$200

Question 2

Use the graph below to answer the following question: What happens to consumer surplus if the price decreases from $8 to $5?

Question 2 options:

a)	It increases by $18

b)	It increases by $3

c)	It increases by $21

d)	It remains constant at $25

e)	It increases by $16

Question 3

Question 3 options:

The difference between a consumer's maximum willingness to pay for something and price is known as

Question 4

Question 4 options:

The area above the supply curve but below price is known as

Question 5

Answer as either True or False. If the answer is false, explain why it is false.

Suppose Regina is willing to pay $50 for a particular pair of shoes. The price of the shoes is $30. If she purchases the shoes, she would obtain a consumer surplus of $20.

P,
10-
9+
8-
7-
6+
5-
D
3+
2+
1 2 3 4 5 6 7 8 9 10 11 12 13
4,

Bakery
Marginal Cost
$2.25
A
B
$2.75
$3.00
D
$3.25

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