which statement is true and why are the others false.justifyMoving production from a high-cost producer to a low-cost producer will decrease total surplus;TRUESuppose the United States changed its laws to allow for the legal sale of a kidney and the government allowed a free market in organs for transplant then there would be a decrease in the price of a kidney and an increase in the shortage of kidneys for transplant;TRUEIf a good is not being produced by sellers with the lowest cost, then the market reflects inefficiency in the allocation of resources:FALSEAssume there are only three sellers in a particular market. The cost of production for Annie is $50, for Beth it is $40 and for Cathy it is $35. If the price in the market is $45 then Annie will sell the product but Beth and Cathy will not sell. :FALSESuppose favorable weather provides increases apple production. As a result, consumer surplus in the market for orange juice decreases because the supply curve of apple juice shifted to the:FALSEIn a market, for any given quantity, the price on a demand curve represents the marginal buyer's willingness to pay:FALSE

Moving production from high cost producer to low cost producer will decrease total supply: If the…

Answered: which statement is true and why are the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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which statement is true and why are the others false.justify

Moving production from a high-cost producer to a low-cost producer will decrease total surplus;TRUE
Suppose the United States changed its laws to allow for the legal sale of a kidney and the government allowed a free market in organs for transplant then there would be a decrease in the price of a kidney and an increase in the shortage of kidneys for transplant;TRUE
If a good is not being produced by sellers with the lowest cost, then the market reflects inefficiency in the allocation of resources:FALSE
Assume there are only three sellers in a particular market. The cost of production for Annie is $50, for Beth it is $40 and for Cathy it is $35. If the price in the market is $45 then Annie will sell the product but Beth and Cathy will not sell. :FALSE
Suppose favorable weather provides increases apple production. As a result, consumer surplus in the market for orange juice decreases because the supply curve of apple juice shifted to the:FALSE
In a market, for any given quantity, the price on a demand curve represents the marginal buyer's willingness to pay:FALSE

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