Which of the following statements correctly differentiates between consumer surplus and net benefits?
A) Consumer surplus at different levels of consumption can be calculated arithmetically, whereas net benefits at different levels of consumption cannot be estimated.
B) Consumer surplus at different levels of consumption cannot be estimated, whereas net benefits at different levels of consumption can be calculated arithmetically.
C) Consumer surplus measures difference between willingness to pay for a good and its price, whereas net benefits measure the overall satisfaction gained from consumption of a good.
D) Consumer surplus equals the overall satisfaction gained from consumption of a good, whereas net benefits measure the difference between willingness to pay for a good and its price.
C
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What denotes the output level where economies of scale are exhausted and constant returns to scale begin?
a. minimum efficient scale b. break-even point c. efficient equilibrium d. zero economic profit
opportunity cost
What will be an ideal response?
The marginal revenue that would be derived from producing a fifth unit of output is
A. $9.
B. $11.
C. $13.
D. $15.