Econ Chapter 8

Consumer surplus is the​ _____ from a good or​ service, in excess of the​ _____, summed over the quantity consumed. A. marginal​ benefit; cost B. marginal​ benefit; maximum value for it C. marginal​ benefit; price paid for it D. ​utility; maximum willingness to pay for it

C

Producer surplus is the​ _____ a good or​ service, in excess of the​ _____ of producing​ it, summed over the quantity produced. A. total revenue​ from; total cost B. marginal benefit​ from; variable cost C. price​ of; fixed cost D. price​ of; marginal cost

D

Total surplus is the sum of​ _____ and​ _____. A. marginal​ revenue; marginal benefit B. consumer​ surplus; producer surplus C. total​ revenue; total cost D. marginal​ benefit; marginal cost

b

Deadweight loss is the decrease in​ _____ that results from an inefficient​ _____ or​ _____. A. total​ surplus; underproduction; overproduction Your answer is correct. B. consumer​ surplus; underproduction; tax C. producer​ surplus; overproduction; subsidy D. total​ surplus; market​ price; marginal cost

A

Producer surplus is​ _______. A. received by a producer when price exceeds the marginal cost of production Your answer is correct. B. equal to the value that the seller places on the​ good, summed over the quantity sold C. the marginal benefit received by a​ producer, summed over all the units sold D. the value of the good minus its marginal​ cost, summed over the quantity sold

A Producer surplus is the price of a good in excess of the marginal cost of producing​ it, summed over the quantity produced. The producer receives a producer surplus whenever price exceeds the marginal cost of productio

Consumer surplus​ _______. A. increases when the market price of the good rises B. equals the amount paid by buyers of the​ good, summed over the quantity bought C. is the sum of the values that consumers place on the good D. arises because we​ don't always have to pay as much as​ we're willing to pay

d Consumer surplus is the excess of marginal benefit from the good over the price paid for​ it, summed over the quantity bought. A​ consumer's marginal benefit from a good is how much that consumer is willing to pay for a unit of the good. Consumer surplus arises when the price that a consumer must pay is less than how much the consumer is willing to pay.