Exam 6: Efficiency and Fairness of Markets

The price of a cowboy hat is $100.Willie is willing to pay $130,Waylon is willing to pay $100,and Merle is willing to pay $85.All of the following statements are true EXCEPT:

The fair rules approach to fairness requires

-Bill and Krista sell potted plants from a roadside stand.The figure above shows Bill and Krista's marginal cost curve and the market price.If Bill and Krista sell 60 plants per week at $8 per plant,their producer surplus from all their plants is

The figure above shows the supply curve for pizza and the market price of pizza. -In the figure above,the producer surplus is

Ben's cost of making an additional rocking chair is $75.

What is producer surplus?

Wal-Mart has a limited number of "Black Friday" (the day-after Thanksgiving Day)special items on sale at prices well below their typical price.Wal-Mart opens at 10 PM on Thanksgiving.Wal-Mart is using a ________ allocation method for these items.

-The figure above shows Kaley's marginal benefit from swimming with manatees and Scott's marginal cost of providing manatee swimming tours.If Scott offers two swim tours per week,he incurs a marginal cost of

Marginal benefit is the

The efficiency of competitive markets happens because

Which of the following statements is correct? i.The demand curve shows the maximum price people are willing to pay for a given quantity of the good. ii.The maximum price a consumer is willing to pay for an additional unit is the marginal benefit of that unit. iii.Value is what a consumer receives and price is what a consumer pays.

The figure above shows the supply curve for pizza and the market price of pizza. -In the figure above,the total revenue from pizza per day is

Which of the following is most closely related to the "fair results" approach to fairness?

The difference between the marginal benefit from a new pair of shoes and the price of the new pair of shoes is

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

Outcomes are fair according to the

Suppose the nation is producing at a point on its PPF.If the marginal cost of producing one more computer is greater than the marginal benefit,the nation is producing

-In the figure above,at the market price of $15,the consumer surplus equals

When the marginal benefit and marginal cost of sodas are equal,then

Lattes at Starbucks are allocated to individuals in society through what type of method?