When there is market failure so that a market produces less than the efficient amount,
A) consumer surplus definitely is larger than when the efficient quantity is produced.
B) the sum of producer surplus and consumer surplus is larger than when the efficient quantity is produced.
C) there is a deadweight loss.
D) consumers definitely lose and producers definitely gain.
E) consumers definitely gain and producers definitely lose.
C
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Suppose a tax of $0.10 per unit on a good creates a deadweight loss of $100 . If the tax is increased to $0.25 per unit, the deadweight loss from the new tax would be
a. $200. b. $250. c. $475. d. $625.
A consumer is currently spending all of her available income on two goods: music CDs and DVDs. At her current consumption bundle, she is spending twice as much on CDs as she is on DVDs. If the consumer has $120 of income and is consuming 10 CDs and 2 DVDs, what is the price of a CD?
a. $4 b. $8 c. $12 d. $20
The IPCC is an acronym that stands for:
A. International Panel on Climate Change. B. International Plant Cultivation Committee. C. Intergenerational Pact on Carbon Conservation. D. International Proponents of Carbon Conservation.
Public schools
A. allow students to get an education without incurring any opportunity cost. B. have done a better job of educating their students in science, math, reading, and writing as the subsidies they receive have increased over the years. C. provide education at a price below the market price. D. provide education at a price above the market price.