Exam 6: Efficiency and Fairness of Markets

Jake just bought a new hockey stick.When he was leaving the shop, he thought that he such a great deal and would have paid $50 more dollars for the stick.Jake received

Lauren and Katy each bought a new bike lock for $20.Both Lauren and Katy would have paid $25 for the lock.The total consumer surplus for Lauren and Katy taken together equaled

What do economists call the loss society experiences when there is market failure and the production of a good is less than the efficient amount?

When technology increases the supply of a good and lower prices increase the quantity demanded,

-The figure above shows the marginal benefit and marginal cost curves for pizza.In the figure, what is the efficient quantity of pizza?

If the market for bicycles is efficient, then

-In the above figure, if the quantity is equal to 1,500,000 units, the deadweight is equal to

-In the above figure, if the quantity is equal to 500,000 units, the deadweight loss is equal to

What must be true for a producer to obtain a producer surplus from the sale of a unit of a good?

-In the figure above, if the market is at equilibrium, the sum of the total consumer surplus and the total producer surplus is

When there is a cost or benefit that affects someone other than the seller and buyer, then there is

-In the figure above, the producer surplus is

-In the above figure, what is the marginal cost of the 4th pizza?

The producer surplus is found by subtracting the ________ and then adding the difference for all units sold.

-In the figure above, for the 3,000th unit, the maximum price a consumer is willing to pay is

Which of the following is true? I∙Marginal cost is measured by the maximum price that consumers are willing to pay for another unit of a good or service. Ii∙Producer surplus equals marginal benefit minus price, summed over the quantity produced. Iii∙A supply curve is a marginal cost curve.

Marginal benefit curves

The "equality of opportunity" idea of fairness claims

The producer surplus of making and selling 10 chairs is found by

Which of the following describes the economic meanings of cost and price?