Assume the world market for oil is competitive and that the marginal cost of producing (extracting and bringing to market) another barrel of oil is $80.60 and the marginal benefit is $80.40. If one more barrel of oil is produced and consumed, how will economic surplus change? Economic surplus will O A. decrease by $80.60. OB. increase by $0.20. OC. increase by $161.00. OD. not change. O E. decrease by $0.20.

Assume the world market for oil is competitive and that the marginal cost of producing (extracting and bringing to market) another barrel of oil is $80.60 and the marginal benefit is $80.40. If one more barrel of oil is produced and consumed, how will economic surplus change? Economic surplus will O A. decrease by $80.60. OB. increase by $0.20. OC. increase by $161.00. OD. not change. O E. decrease by $0.20.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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