NEED A PERFECT PAPER? PLACE YOUR FIRST ORDER AND SAVE 15% USING COUPON:

SOLVED

4.2  The Efficiency of Competitive Markets 1) In a competitive market equilibrium A) total consumer surplus equals total producer surplus. B) marginal benefit and marginal cost are maximized. C) consumers and producers benefit equally. D) the marginal benefit equals the marginal cost of the last unit sold. 2) Economic efficiency in a competitive market is achieved when A) economic surplus is equal to consumer surplus. B) consumers and producers are satisfied. C) the marginal benefit equals the marginal cost from the last unit sold. D) producer surplus equals the total amount firms receive from consumers minus the cost of production. 3) Refer to Figure 4-3. What is the value of consumer surplus at a price of $18?? A) $60 B) $120 C) $180 D) $240 4) Refer to Figure 4-3. What is the value of producer surplus at a price of $18?? A) $240 B) $300 C) $340 D) $720 5) Refer to Figure 4-3. What is the value of the deadweight loss at a price of $18? A) $100 B) $180 C) $660 D) $1,040 6) Refer to Figure 4-3. At a price of $18 consumers are willing to buy 40 pounds of tiger shrimp. Is this an economically efficient quantity? A) No, the marginal benefit of the 40th unit exceeds the marginal cost of that 80th unit. B) Yes, otherwise consumers would not buy 40 units. C) Yes, because $18 shows what consumers are willing to pay for the product. D) No, the marginal cost of the 40th unit exceeds the marginal benefit of the 40th unit. 7) ________ refers to the reduction in economic surplus resulting from not being in competitive equilibrium. A) Marginal cost B) Producer atrophy C) Deadweight loss D) Economic shortage 8) Economic surplus A) does not exist when a competitive market is in equilibrium. B) is equal to the sum of consumer surplus and producer surplus. C) is the difference between quantity demanded and quantity supplied when the market price for a product is greater than the equilibrium price. D) is equal to the difference between consumer surplus and producer surplus. 9) ________ is maximized in a competitive market when marginal benefit equals marginal cost. A) Deadweight loss B) Marginal profit C) Economic surplus D) Selling price 10) Economic efficiency is defined as a market outcome in which the marginal benefit to consumers of the last unit produced is equal to the marginal cost of production, and in which A) the sum of consumer surplus and producer surplus is at a maximum. B) economic surplus is minimized. C) the sum of the benefits to firms is equal to the sum of the benefits to consumers. D) the sum of consumer surplus and producer surplus is minimized.

Solution:

15% off for this assignment.

Our Prices Start at $11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!

Why US?

100% Confidentiality

Information about customers is confidential and never disclosed to third parties.

Timely Delivery

No missed deadlines – 97% of assignments are completed in time.

Original Writing

We complete all papers from scratch. You can get a plagiarism report.

Money Back

If you are convinced that our writer has not followed your requirements, feel free to ask for a refund.