At the output where the combined amounts of consumer and producer surplus are largest
A. marginal benefit exceeds marginal cost by the greatest amount.
B. consumer surplus exceeds producer surplus by the greatest amount.
C. the areas of consumer and producer surplus necessarily are equal.
D. the maximum willingness to pay for the last unit of output equals the minimum acceptable price of that unit of output.
Answer: D
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Complete the table below by computing the missing numbers from those that are given. QFixed CostsVariable CostsAverage CostMarginal Cost0$20_______________1_______________$82_____$15__________3__________$13.67_____4_______________ 65_______________ 76_____ 42__________7_____ 51__________8__________ 10.125_____? ?
What will be an ideal response?
Refer to the table below. If at the current advertising level, A = $10,000, B = $15,500, and C = $7,800, to maximize profit, which of the following should the firm do?
The table above shows the current costs for a firm to advertising on the radio, television, and newspaper.
A) The firm should decrease its advertising on the radio and increase its advertising in newspapers.
B) The firm should decrease its advertising on the television and increase its advertising in newspapers.
C) The firm should increase its advertising on the television and decrease its advertising in newspapers.
D) The firm should decrease its advertising on the radio and decrease its advertising in newspapers.
If Kobe, an NBA star athlete, earns $10 million per year but has no money in the bank, he has a
a. high income and high wealth. b. low income and high wealth. c. high income and low wealth. d. low income and low wealth.
If the economy is on the steep portion of the AS curve
A. government spending, but not consumption, crowds out planned investment. B. consumption, but not government spending, crowds out planned investment. C. there is little crowding out of planned investment. D. there is almost complete crowding out of planned investment.