The consumer surplus , producer surplus when Company B maximizes profit.

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Question: Explain the concept of consumer surplus and producer surplus. How are these measures related to market efficiency?Don't use chatgpt please provide valuable answer otherwise be ready for disupvote

Answer 1

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Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 16, Problem 6IAPA

To determine

To find:

The consumer surplus, producer surplus when Company B maximizes profit.

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Question: Explain the concept of consumer surplus and producer surplus. How are these measures related to market efficiency?Don't use chatgpt please provide valuable answer otherwise be ready for disupvote

The table below depicts the revenue for the only restaurant in a small rural town. It costs the restaurant $6.50 to prepare each meal. Use the table to answer questions. Quantity Price Total Revenue Marginal Revenue Total Costs Marginal Costs Economic Profit/Loss 0 $8.00 1 $7.50 2 $7.00 3 $6.50 4 $6.00 5 $5.50 What price should the restaurant charge if it wants to maximize the total economic surplus? (i.e. What level of output would achieve allocative efficiency? At this level of output what is the economic profit for the restaurant?

Complete the table and answer the following: 1. Sketch a graph of the table 2. Compute consumer surplus, producer surplus, and deadweight loss. 3. If the movie theater industry were perfectly competitive, how many tickets would be sold and what would be the price of each ticket? [competitive outcome, (Pcomp, Qcomp)] Competitive price: $___ per ticket Competitive output: ___ tickets

Answer 2

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Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 16, Problem 6IAPA

To determine

To find:

The consumer surplus, producer surplus when Company B maximizes profit.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Answer 3

Question

Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 16, Problem 6IAPA

To determine

To find:

The consumer surplus, producer surplus when Company B maximizes profit.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Answer 4

Question

Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 16, Problem 6IAPA

To determine