Microeconomics (2nd Edition) (Pearson Series in Economics)
2nd Edition
ISBN: 9780134492049
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
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Question
Chapter 7, Problem 4P
(a)
To determine
The
(b)
To determine
Firms that will maximize social surplus.
(c)
To determine
Consumers whose purchase will maximize social surplus.
(d)
To determine
The consumer, producer, and social surplus at the equilibrium price.
(e)
To determine
The differences in the result of this question from the previous one.
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Explain, using a diagram, why consumer surplus is a
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Use the ideas of consumer surplus and producer surplus to explain why economists say competitive markets are effificient. Why are below- or above-equilibrium levels of output ineffificient, according to these two sets of ideas?
The price of a shirt is $20. Charlie can produce a shirt at a marginal cost of $10, Mac can produce a shirt for $18, and Dennis can produce a shirt for $22. For a shirt, Deandra has a marginal benefit of $25. Frank has marginal benefit of $20, and Artemis has a marginal benefit of $18. Which of the following statements is correct?
The sum of consumer surplus is $5 and the sum of producer surplus is $12.
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Chapter 7 Solutions
Microeconomics (2nd Edition) (Pearson Series in Economics)
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