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D. Q, Quantity (bags) Quantity (bags) Instructions: Round your answers to two decimal places. a. What is the dollar value of the total surplus (= producer surplus + consumer surplus) when the allocatively efficient output level is produced? 24 What is the dollar value of the consumer surplus at that output level? b.What is the dollar value of the deadweight loss when output level Q2 is produced? $ What is the total surplus when output level Q2 is produced? 2$ c.What is the dollar value of the deadweight loss when output level Q is produced? $ What is the dollar value of the total surplus when output level Q3 is produced? %24

D. Q, Quantity (bags) Quantity (bags) Instructions: Round your answers to two decimal places. a. What is the dollar value of the total surplus (= producer surplus + consumer surplus) when the allocatively efficient output level is produced? 24 What is the dollar value of the consumer surplus at that output level? b.What is the dollar value of the deadweight loss when output level Q2 is produced? $ What is the total surplus when output level Q2 is produced? 2$ c.What is the dollar value of the deadweight loss when output level Q is produced? $ What is the dollar value of the total surplus when output level Q3 is produced? %24

Microeconomic Theory
Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter2: Mathematics For Microeconomics
Section: Chapter Questions
Problem 2.6P
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D. Q, Quantity (bags) Quantity (bags) Instructions: Round your answers to two decimal places. a. What is the dollar value of the total surplus (= producer surplus + consumer surplus) when the allocatively efficient output level is produced? 24 What is the dollar value of the consumer surplus at that output level? b.What is the dollar value of the deadweight loss when output level Q2 is produced? $ What is the total surplus when output level Q2 is produced? 2$ c.What is the dollar value of the deadweight loss when output level Q is produced? $ What is the dollar value of the total surplus when output level Q3 is produced? %24
Transcribed Image Text:D. Q, Quantity (bags) Quantity (bags) Instructions: Round your answers to two decimal places. a. What is the dollar value of the total surplus (= producer surplus + consumer surplus) when the allocatively efficient output level is produced? 24 What is the dollar value of the consumer surplus at that output level? b.What is the dollar value of the deadweight loss when output level Q2 is produced? $ What is the total surplus when output level Q2 is produced? 2$ c.What is the dollar value of the deadweight loss when output level Q is produced? $ What is the dollar value of the total surplus when output level Q3 is produced? %24
ADVANCED ANALYSIS Assume the following values for the diagrams below: Q = 15 bags. Q2 = 10 bags. Q3 = 22 bags. The market equilibrium price is $40 per bag. The price at point a is $70 per bag. The price at point c is $10 per bag. The price at point d is $50 per bag. The price at point e is $30 per bag. The price at point fis $54 per bag. The price at point g is $26 per bag. Apply the formula for the area of a triangle (Area = 2 x Base × Height) to answer the following questions. (a) (b) Efficiency loss from underproduction Efficiency loss from overproduction b. Quantity (bags) Quantity (bags) Instructions: Round your answers to two decimal places. a. What is the dollar value of the total surplus (= producer surplus + consumer surplus) when the allocatively efficient output level is produced? Price (per bag) Price (per bag)
Transcribed Image Text:ADVANCED ANALYSIS Assume the following values for the diagrams below: Q = 15 bags. Q2 = 10 bags. Q3 = 22 bags. The market equilibrium price is $40 per bag. The price at point a is $70 per bag. The price at point c is $10 per bag. The price at point d is $50 per bag. The price at point e is $30 per bag. The price at point fis $54 per bag. The price at point g is $26 per bag. Apply the formula for the area of a triangle (Area = 2 x Base × Height) to answer the following questions. (a) (b) Efficiency loss from underproduction Efficiency loss from overproduction b. Quantity (bags) Quantity (bags) Instructions: Round your answers to two decimal places. a. What is the dollar value of the total surplus (= producer surplus + consumer surplus) when the allocatively efficient output level is produced? Price (per bag) Price (per bag)
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