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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Question 2

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.
$150.
b.
C.
a.
60
2.
5.
Transcribed Image Text:NAME PRINT LAST NAME, FIRST NAME SECTION# CONSUMERS, PRODUCERS, AND MARKET EFFICIENCY Use the graph below to answer questions 1 through 6. Price ($) 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.
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