A consumer values a car at $30,00 . and a producer values the same car at $20,000 . If the transaction is completed at $24,000 . the transaction will generate:
a. No surplus
b. $4,00 . worth of seller surplus and unknown amount of buyer surplus
c. $6,00 . worth of buyer surplus and $4,00 . of seller surplus
d. $6,00 . worth of buyer surplus and unknown amount of seller surplus
c
Economics
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What will be an ideal response?
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If a firm triples inputs and produces twice the output, then there are
A) constant returns to scale. B) diminishing marginal product. C) decreasing returns to scale. D) increasing returns to scale.
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