Which of the following is not a reason why the market outcomes maximizes total surplus?a. The market outcome assures that the producers that supply the good are the lowest cost producersAt the market outcome every unit that has a marginal benefit to consumers that is at least as large as the marginal cost of productionb.is produced.c. The market outcome maximizes the average consumer surplus.d. The market outcome assures that the good is allocated to the consumers with the highest willingness to pay

Producer surplus: Producer surplus is the difference between the amount that producers are…

Answered: Which of the following is not a reason…

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter10: Externalities

Section: Chapter Questions

Problem 6PA: The many identical residents of Whoville love drinking Zlurp. Each resident has the following...

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What is the term used to describe the situation where resources are allocated in a way that maximizes total surplus? A. Pareto efficiency B. Market equilibrium C. Social welfare D. Deadweight loss
The figure shows the pizza market. A) If the price of a slice of 4-point pizza is $3, what is the consumer surplus of the 50th slice? B) If the price of a slice of pizza is $3, what is the producer surplus for the 50th slice of pizza? C) What is the efficient quantity? What is the equilibrium quantity? What is the loss when the equilibrium quantity is produced?
Name two types of market failure. Explain why eachmay cause market outcomes to be inefficient.
There are four consumers willing to pay the amounts for following haircuts:Gloria:$35 Jay:$10 Claire:$40 Phil:$25.There are four haircutting businesses with the following cost:FirmA:$15FirmB:$30FirmC:$20FirmD:$10.Each firm has the capacity to produce only one haircut.To achieve efficiency,how many haircuts should be given?Which businesses should cut hair and which consumers should have their hair cut?How large the maimum total surplus?
A) If the price of a canister of maple syrup is $15, how many jars does Vermont Maple Farms produce and sell & What is producer surplus at $15? B) If the price of a canister of maple syrup increases to $25, how many jars does Vermont Maple Farms produce and sell & What is producer surplus at $25? C) If the price of a canister of maple syrup increases to $35, how many jars does Vermont Maple Farms produce and sell & What is producer surplus at $35?
Please answer correct the answer please Explain Don't answer by pen paper please Multiple Choice Area (C + E) becomes deadweight loss. Area (B) transfers from consumer surplus to producer surplus. $12 of surplus transfers from consumers to producers. Total deadweight loss equals areas A + B + C + D + E.
When are Consumer and Producer Surplus at a maximum? A) When a market is in equilibrium B) When productive resources are most efficiently utilized C) When resources are best allocated to consumers D) All of the above
1. The consumer surplus in a market equals a- the value the consumers' receive minus the amount they pay b- the amount the consumers pay minus the value they receive c- the value the consumers receive d- the value the consumers' receive minus the producers' opportunity cost 2. The producer surplus in a market equals a- the value the consumers receive from the good minus the producers' opportunity cost of providing it b - the producers’ opportunity cost of providing the good minus the amount they receive from selling it c- the amount the producers receive from selling the good d- the amount the producers receive from selling the good minus their opportunity cost of providing it 3. A market is efficient when a- the consumers' marginal benefit exceeds the producers' marginal cost by the greatest amount b- the consumers' marginal benefit equals the producers' marginal cost c- consumers get the highest value from participating in it d- the producers' opportunity costs…
Give proper Explanation of the answer Cathy is willing to pay$40for a subway and Aby is willing to pary only$35. The price of the subway is$30. Suppose Cathy manages to buy the last subway. However, for some teason, the restaurant decides to take the newly bought subway from Cathy, refund Cathy the price he paid and let Ally buy the subway at$30. a. the sum of consumer surplus and producer surplus increases. b. the producer surplus increases ic the consumer sieplus decreasets d. the consumer vurolus increases e. the produghr surplus decreases Clear my choice
Ernie owns a water pump. Because pumping large amounts of water is harder than pumping small amounts, the cost of producing a bottle of water rises as he pumps more. Here is the cost he incurs to produce each bottle of water: Bottle of water Cost Cost of 1st bottle $1 Cost of 2nd bottle $3 Cost of 3rd bottle $5 Cost of 4th bottle $7 If the price rises to $6, how does quantity supplied change? How does Ernie’s producer surplus change? Show these changes in your graph.
The minimum price that producers must receive to induce them to produce another unit of a good or service is equal to the good's ___________. Question 1 options: a) marginal cost b) marginal benefit c) producer surplus
Look at question 9 and use the info on chart to answer question 10 E on how did the price change the total surplus compared to free market equilibrium on question 9

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