NAME PRINT LAST NAME, FIRST NAME SECTION# CONSUMERS, PRODUCERS, AND MARKET EFFICIENCY Use the graph below to answer questions 1 through 6. Price ($) 20 15 Supply 10 7.50 Demand 20 40 80 Quantity The marginal benefit of the 20th unit is $7.50; $15 $10; $10 and the marginal cost of the 20th unit is $15; $7.50 d. $5; $5 1. -a. c. b. The marginal benefit of the 40th unit is $7.50; $15 $10; $10 and the marginal cost of the 40th unit is $15; $7.50 $5; $5 LEGO a. C. b. d. 3. If the price of this product is $10 per unit, consumers will purchase units and consumer surplus will equal $ b. 20; 50 20; 200 40; 50 d. 40; 200 a. C. If the price of this product is $10 per unit, firms will sell will equal $ 20; 25 4. units and producer surplus b. 20; 100 40; 25 d. 40; 100 a. C. The efficient level of output is units because marginal benefit (MB) equals at this output level and the sum of consumer and producer surplus is 40; MC; maximized 20; 40; maximized 40; 40; 0 20; MC; 0 C. a. b. d. If the quantity exchanged in this market is limited to 20 units, the resulting deadwei loss is equal to: $50. 6. $75. $100. d. $150. b. C. a. 60 2. 5.

NAME PRINT LAST NAME, FIRST NAME SECTION# CONSUMERS, PRODUCERS, AND MARKET EFFICIENCY Use the graph below to answer questions 1 through 6. Price ($) 20 15 Supply 10 7.50 Demand 20 40 80 Quantity The marginal benefit of the 20th unit is $7.50; $15 $10; $10 and the marginal cost of the 20th unit is $15; $7.50 d. $5; $5 1. -a. c. b. The marginal benefit of the 40th unit is $7.50; $15 $10; $10 and the marginal cost of the 40th unit is $15; $7.50 $5; $5 LEGO a. C. b. d. 3. If the price of this product is $10 per unit, consumers will purchase units and consumer surplus will equal $ b. 20; 50 20; 200 40; 50 d. 40; 200 a. C. If the price of this product is $10 per unit, firms will sell will equal $ 20; 25 4. units and producer surplus b. 20; 100 40; 25 d. 40; 100 a. C. The efficient level of output is units because marginal benefit (MB) equals at this output level and the sum of consumer and producer surplus is 40; MC; maximized 20; 40; maximized 40; 40; 0 20; MC; 0 C. a. b. d. If the quantity exchanged in this market is limited to 20 units, the resulting deadwei loss is equal to: $50. 6. $75. $100. d. $150. b. C. a. 60 2. 5.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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