The figure above shows the market for brooms. If 800 brooms are produced,
A) consumer surplus is maximized.
B) producer surplus is maximized.
C) market failure and a deadweight loss occur.
D) marginal cost is less than marginal benefit.
E) there is no deadweight loss.
C
You might also like to view...
Jim is haggling with a car dealer on the price of a used car. During the bargaining, the storekeeper discovers that the car's stereo is better than he or Jim originally realized. If Jim is a huge music fan, the total surplus available from the sale
a. Increases b. Decreases c. Is not affected d. All of the above
The economic surplus of an action is:
A. the difference between the explicit and implicit costs of taking an action. B. the money a person has left over after taking an action. C. the difference between the benefit and the cost of taking an action. D. the benefit gained by taking an action.
The monopoly can shift the demand for its product rightward by
What will be an ideal response?A) accommodating new uses for its product B) advertising new uses for its product C) moving along the learning curve D) All of the above
Indirect incentive
What will be an ideal response?