A socially optimal price:
A) maximizes consumer surplus and minimizes producer surplus.
B) maximizes producer surplus and minimizes consumer surplus.
C) maximizes total surplus.
D) maximizes deadweight loss.
C
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Suppose at the current price, the demand for copper is estimated at -3.14. What happens to sales revenue if the government imposes a price ceiling below the free market equilibrium price in the copper market?
A) Sales revenue falls. B) Sales revenue remains unchanged because copper is a necessity for most industries. C) Sales revenue rises. D) It cannot be determined without information on prices.
The consensus among researchers is that union workers earn 15 percent more than otherwise identical nonunion workers. This means unions have probably raised wages
A. exactly 15 percent. B. less than 15 percent. C. at least 15 percent. D. more or less than 15 percent, but one cannot tell exactly.