Refer to Figure 4-4. The figure above represents the market for iced tea. Assume that this is a competitive market. If 10,000 units of iced tea are sold

A) the marginal benefit of each of the 10,000 units of iced tea equals $3.
B) marginal benefit is less than marginal cost.
C) the deadweight loss is equal to economic surplus.
D) producer surplus equals consumer surplus.

A

Economics

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Suppose the real wage of a worker remains unchanged between Year 1 and Year 2 but the nominal wage decreases from $20 in Year 1 to $18 in Year 2 . This implies that the price level has: a. increased by 20 percent. b. increased by 25 percent. c. remained unchanged

d. fallen by 10 percent. e. fallen by 20 percent.

Economics

The short-run break-even price

A) is the price at which the firm's current liabilities are paid off. B) is the price at which a firm's total revenues equal total costs. C) occurs at the output at which the firm yields a below normal rate of return. D) occurs at the output at which the firm yields a positive economic profit.

Economics