Managerial Economics: A Problem Solving Approach
5th Edition
ISBN: 9781337106665
Author: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher: Cengage Learning
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Question
Chapter 2, Problem 8MC
To determine
The outcome of the transaction.
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A consumer values a car at $20,000 and it costs a
producer $15,000 to make the same car. If the
transaction is completed at $18,000, the
transaction will generate
a. no surplus
b. $5,000 worth of seller surplus and unknown
amount of buyer surplus.
c. $2,000 worth of buyer surplus and $3,000 of
seller surplus.
d. $3,000 worth of buyer surplus and unknown
amount of seller surplus.
Table 7-10
The following table represents the costs of five possible sellers.
Seller
Abby
Bobby
Dianne
Evaline
Carlos
Cost
$1,600
$1,300
$1,100
$900
$800
19. Refer to Table 7-10. If the market price is $1,200, the producer surplus in the market is
a. $500.
b. $400.
c. $800.
d. $100.
9.
Chapter 2 Solutions
Managerial Economics: A Problem Solving Approach
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Similar questions
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