1. The consumer surplus in a market equals a- the value the consumers' receive minus the amount they pay b- the amount the consumers pay minus the value they receive c- the value the consumers receive d- the value the consumers' receive minus the producers' opportunity cost
1. The consumer surplus in a market equals a- the value the consumers' receive minus the amount they pay b- the amount the consumers pay minus the value they receive c- the value the consumers receive d- the value the consumers' receive minus the producers' opportunity cost
Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter3: Demand, Supply, And The Market Proces
Section: Chapter Questions
Problem 6CQ
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1. The consumer surplus in a market equals
a- the value the consumers' receive minus the amount they pay
b- the amount the consumers pay minus the value they receive
c- the value the consumers receive
d- the value the consumers' receive minus the producers' opportunity cost
2. The producer surplus in a market equals
a- the value the consumers receive from the good minus the producers' opportunity cost of providing it
b - the producers’ opportunity cost of providing the good minus the amount they receive from selling it
c- the amount the producers receive from selling the good
d- the amount the producers receive from selling the good minus their opportunity cost of providing it
3. A market is efficient when
a- the consumers' marginal benefit exceeds the producers' marginal cost by the greatest amount
b- the consumers' marginal benefit equals the producers' marginal cost
c- consumers get the highest value from participating in it
d- the producers' opportunity costs are minimized
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