Econ 202, section 6.3-6.10

________ refers to the reduction in economic surplus resulting from not being in competitive equilibrium.

Deadweight loss

The area ________ the market supply curve and ________ the market price is equal to the total amount of producer surplus in a market.

above; below

Marginal benefit is equal to the ________ benefit to a consumer receives from consuming one more unit of a good or service

additional

Each point on a ________ curve shows the willingness of consumers to purchase a product at different prices.

demand

Economic surplus

is equal to the sum of producer surplus and consumer surplus

Why is the demand curve referred to as a marginal benefit​ curve?

it shows the willingness of the consumer to purchase a product at different prices

In a competitive market the demand curve shows the ________ received by consumers and the supply curve shows the ________.

marginal benefit; marginal cost

Consumer surplus in a market for a product would be equal to ________ if the market price was zero.

the area under the demand curve

Consumer surplus in a market for a product would be equal to​ ________ if the market price was zero.

the area under the demand curve

In a competitive market equilibrium

the marginal benefit equals the marginal cost of the last unit sold.

Willingness to pay measures

the maximum price that a buyer is willing to pay for a good.

Suppliers will be willing to supply a product only if

the price received is at least equal to the additional cost of producing the product.

If, in a competitive market, marginal benefit is less than marginal cost

the quantity sold is greater than the equilibrium quantity.

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

the sum of consumer surplus and producer surplus is at a maximum.

Consumer surplus measures the net benefit from participating in a market.

true

Marginal cost is the additional cost to a firm of producing one more unit of a good or service.

true

Producer surplus is the difference between the lowest price a firm is willing to accept for a product and the price it actually receives for the product.

true