Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. If 8,000 pounds of pecans are sold
A) marginal benefit is equal to marginal cost.
B) the deadweight loss is equal to economic surplus.
C) producer surplus equals consumer surplus.
D) the marginal benefit of each of the 8,000 pounds of pecans equals $9.
A
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Economists recognize that because people have limited resources:
A. government intervention is necessary. B. our future is bleak. C. they have to make trade-offs. D. they will never be happy.
One of the main reasons behind hyperinflation episodes is:
A) a decrease in real GDP. B) large government budget deficits. C) high tax rates. D) a decrease in the demand for consumer goods.
What is the difference between adaptive expectations and rational expectations?
What will be an ideal response?
Mike is able to complete a tax return in two hours earning a fee of $100 . As an alternative, he could pitch in at a volunteer car wash washing four cars in one hour. His roommate Joe would take four hours to complete a tax return earning a $100 fee and also can wash four cars in one hour. Both individuals could benefit if
a. Mike worked on tax returns for eight hours and paid Joe $5 for each car he washed b. Mike worked on tax returns for eight hours and paid Joe $10 for each car he washed. c. Mike worked on tax returns for eight hours and paid Joe $15 for each car he washed d. Joe worked on tax returns for eight hours and paid Mike $10 for each car he washed