Refer to Figure 4-4. The figure above represents the market for iced tea. Assume that this is a competitive market. If 20,000 units of iced tea are sold
A) marginal benefit is equal to marginal cost.
B) the deadweight loss is equal to economic surplus.
C) producer surplus equals consumer surplus.
D) the marginal benefit of each of the 20,000 units of iced tea equals $3.
A
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The Navigation Acts:
a. placed tariffs on the import of British goods by the colonies. b. prohibited trade between the British West Indies and the colonies. c. allowed colonial trade on British ships commanded by foreign captains. d. encouraged trade between the colonies and the Dutch. e. None of the above is correct.
Refer to the table below. If the consumer buys both product X and product Y, how much will the consumer buy of each in order to maximize utility?
Answer the question based on the table below showing the marginal utility schedules for product X and product Y for a hypothetical consumer. The price of product X is $4 and the price of product Y is $2. The income of the consumer is $20.
A. 4X and 2Y
B. 3X and 4Y
C. 4X and 3Y
D. 5X and 3Y