We have three buyers who value a good at $45. There are three possible sellers A, B, C whose marginal costs of production are $20, $30 and $50.Assuming all benefits (and costs) accrue to the buyers (and sellers) what is total surplus created if the buyers and sellers interact in a market? Do not enter the $sign. Notice that you have enough information to only compute surplus for integer values of the good so I should not have to say–assume integer values for good–you should know it.
We have three buyers who value a good at $45. There are three possible sellers A, B, C whose marginal costs of production are $20, $30 and $50.Assuming all benefits (and costs) accrue to the buyers (and sellers) what is total surplus created if the buyers and sellers interact in a market? Do not enter the $sign. Notice that you have enough information to only compute surplus for integer values of the good so I should not have to say–assume integer values for good–you should know it.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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We have three buyers who value a good at $45. There are three possible sellers A, B, C whose marginal costs of production are $20, $30 and $50.Assuming all benefits (and costs) accrue to the buyers (and sellers) what is total surplus created if the buyers and sellers interact in a market? Do not enter the $sign. Notice that you have enough information to only compute surplus for integer values of the good so I should not have to say–assume integer values for good–you should know it.
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