Exam 6: Efficiency and Fairness of Markets

At the current production point on a nation's production possibilities frontier, the marginal benefit of a slice of pizza is 500 tacos while the marginal cost of producing a slice of pizza is 750 tacos.For the nation to produce at the point of allocative efficiency, what should be done?

Which of the following occurs when a market is efficient?

-The figure above shows Diane's demand curve for soda.The price of a soda is $1.00.Diane's total benefit from consuming 15 sodas is

-Draw and describe a marginal benefit curve for slices of pizza where the opportunity cost of consuming a slice of pizza is a taco.

-The figure above shows the supply curve for soda.The market price is $1.00 per soda.The marginal cost of the 10,000th soda is

When the marginal cost of producing a bike is greater than the marginal benefit of the bike, for resource use to be allocatively efficient

Marginal benefit

Jason needs help getting ready for the next test in his economics course and would like to hire Maria, an economics tutor to help him.Jason is willing to pay $30 for the first hour of tutoring, $25 for the second, $20 for the third, $15 for the fourth, and $10 for the fifth.The equilibrium price for tutoring is $15 per hour.For how many hours of tutoring will Jason hire Maria? Why this amount of hours? What is Jason's consumer surplus, if any, from the tutoring? What is Maria's consumer surplus from the tutoring?

-The figure above shows the market for pizza. a∙If the price of a slice of pizza is $3, what is the consumer surplus of the 50th slice? b∙If the price of a slice of pizza is $3, what is the producer surplus of the 50th slice c∙What is the efficient quantity? What is the equilibrium quantity? What is the deadweight loss when the equilibrium quantity is produced?

-In the above figure, what is the marginal cost of the 8th pizza?

Although Jack and Vanessa were equally qualified, Jack was promoted to manager instead of Vanessa because the president of the company thought that the other employees would not respect a female manager.The resource, the management position, was allocated in what manner?

Any point on the production possibility frontier is