The above figure shows Dana's marginal benefit curve for ice cream. If the price of ice cream is $2 per gallon, then the gallon that gives Dana exactly zero consumer surplus is
A) the 8th gallon.
B) the 12th gallon.
C) the 16th gallon.
D) the 20th gallon.
B
You might also like to view...
A natural monopoly is defined as
A) a market in which competition and entry are restricted by the granting of a government license. B) an industry in which economies of scale allow one firm to supply the entire market at the lowest possible cost. C) a market in which competition and entry are restricted by the granting of a patent. D) any market where one firm constitutes the entire industry.
If the average cost of a product is $10 per unit and the price is $5, the firm is losing money
a. True b. False Indicate whether the statement is true or false
If the social value of producing a good is always higher than the private value of producing it, then there is a
a. negative externality associated with the production of the good, and the market equilibrium quantity of the good is less than the socially optimal quantity. b. negative externality associated with the production of the good, and the socially optimal quantity of the good is less than the market equilibrium quantity. c. positive externality associated with the production of the good, and the market equilibrium quantity of the good is less than the socially optimal quantity. d. positive externality associated with the production of the good, and the socially optimal quantity of the good is less than the market equilibrium quantity.
Refer to Table 11.1. If exports increase by 20 (X = 100), what is the new equilibrium level of output?
A) 1,825 B) 2,425 C) 7,300 D) 9,700