882 283 222 2 100 PRICE 90 80 70 60 50 40 30 20 MR MC Q-30 and P-301 Q-45 and P-45 Q-60 and P-30 Q-30 and P-60 Demand 10 20 30 40 50 60 70 80 90 100 QUANTITY Refer to Figure 15-7. To maximize total surplus, a benevolent social planner would choose which of the following outcomes?

882 283 222 2 100 PRICE 90 80 70 60 50 40 30 20 MR MC Q-30 and P-301 Q-45 and P-45 Q-60 and P-30 Q-30 and P-60 Demand 10 20 30 40 50 60 70 80 90 100 QUANTITY Refer to Figure 15-7. To maximize total surplus, a benevolent social planner would choose which of the following outcomes?

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

Figure 15-7
882 283 222 2
00
100
PRICE
90
80
60
30
20
10
MR
MC
Q-30 and P-30
Q-45 and P-45
Q-60 and P=30
Q-30 and P = 60
Demand
10 20 30 40 50 60 70 80 90 100
QUANTITY
Refer to Figure 15-7. To maximize total surplus, a benevolent social planner would choose which of the
following outcomes?
Mindrap-Cengage Lea

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1. Gathering supplies for a New Year's celebration, Harpua has demand for balloons given by p = 8 − q, while Tela's demand is p = 2 − q. To determine market demand, assume that Harpua and Tela are the only customers in this market. If market supply is given by p = q/8 , what is consumer surplus at the competitive equilibrium?