Macroeconomics (7th Edition)
Macroeconomics (7th Edition)
7th Edition
ISBN: 9780134738314
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 4, Problem 4.2.2RQ

What is economic efficiency? Why do economists define efficiency in this way?

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What is marginal benefit? What is marginal cost? What is consumer surplus? What is producer surplus?
Define consumer surplus and producer surplus. What is meant by economic efficiency, and how does it relate to the gains of consumers and producers?
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?

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Macroeconomics (7th Edition)

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