What area in the above figure is the consumer surplus at the efficient quantity?
A) A
B) A + B + C
C) F
D) D + E + F
B
You might also like to view...
In the market for automobile insurance, adverse selection implies that
A) those who are insured might take greater risks. B) those who are uninsured might take greater risks. C) insured and uninsured alike will take greater risks. D) drivers with greater risks are more likely to buy insurance.
What is an isoquant? What is the slope of an isoquant?
What will be an ideal response?
Which of the following is an equilibrium condition for the goods market?
A) M = kPQ B) Desired saving and desired investment C) Money demand = money supply D) IS = LM
Slick Shades has a constant marginal cost of production equal to $40 and the distributors have a constant marginal cost of distribution equal to $20. If Slick Shades is producing the profit-maximizing number of sunglasses (in hundreds) and charging the profit-maximizing wholesale price, what is the retail price?
The figure above shows the wholesale demand and marginal revenue curves for Slick Shades Sunglasses, a sunglasses firm with market power. Slick Shades Sunglasses has a constant marginal cost of production and it sells to perfectly competitive independent retail distributors that have a constant marginal cost of distribution.
A) $160
B) $140
C) $150
D) $120