Question :
11) If the marginal benefit of a hot dog greater : 1241548
11) If the marginal benefit of a hot dog is greater than its marginal cost, then to increase efficiency,
A) more hot dogs should be produced.
B) fewer hot dogs should be produced.
C) nothing should be done if the marginal benefit is greater than the marginal cost by the maximum amount because in this case the efficient quantity of hot dogs is being produced.
D) production should be halted.
E) More information is needed about the price of a hot dog in order to determine if production should be increased, decreased, or not changed.
12) If the demand curve is the same as the marginal benefit curve and the supply curve is the same as the marginal cost curve, then the quantity at which they cross is
i.the equilibrium quantity.
ii.the allocatively efficient quantity.
iii.the quantity with no deadweight loss.
A) i, ii, and iii.
B) only i.
C) only ii.
D) only i and ii.
E) only i and iii.
13) The figure above shows the competitive market for slices of key lime pie. If the production is 40 slices per day, someone is willing to buy another slice of pie for
A) more than it costs to produce the slice.
B) less than it costs to produce the slice.
C) an amount equal to the cost of producing the slice.
D) an amount equal to the cost of producing all 40 slices.
E) an amount that is not comparable to the cost of producing the slice.
14) The figure above represents the competitive market for slices of key lime pie. If the production is 80 slices per day, the cost of the 80th slice is
A) less than anyone is willing to pay for it.
B) more than anyone is willing to pay for it.
C) equal to what someone is willing to pay for it.
D) indeterminant.
E) equal to the deadweight loss from the 80th slice.
15) The figure above represents the competitive market for slices of key lime pie. When 60 slices are produced, the marginal cost
A) exceeds the marginal benefit.
B) is less than the marginal benefit.
C) equals the marginal benefit.
D) is not defined.
E) equals the deadweight loss on the 60th slice.
16) The figure above represents the competitive market for slices of key lime pie. When the price equals $3
A) there is a shortage of slices of pie.
B) there is a surplus of slices of pie.
C) the efficient quantity of slices is being produced.
D) the quantity produced is inefficient.
E) the deadweight loss is maximized.
17) The figure above represents the competitive market for slices of key lime pie. When the price is $3, the total consumer surplus equals
A) $120.
B) $90.
C) $60.
D) $0.
E) None of the above answers is correct.
18) The figure above represents the competitive market for slices of key lime pie. When the price is $3, the total producer surplus equals
A) $0.
B) $60.
C) $90.
D) $120.
E) None of the above answers is correct.
19) The figure above shows the marginal benefit and marginal cost curves for pizza. In the figure, what is the efficient quantity of pizza?
A) 0 pizzas
B) 10,000 pizzas
C) 20,000 pizzas
D) 30,000 pizzas
E) The efficient quantity cannot be determine without more information.
20) In the figure above, if the market price is $12, then the total consumer surplus is
A) $12.
B) $10.
C) minimized.
D) $240.
E) $480.
21) In the figure above, if the market is at equilibrium, then the total consumer surplus equals the area ________ and the total producer surplus equals the area ________.
A) A; B
B) B; C
C) C; B
D) A; C
E) A + B; C
22) In the figure above, if the market is at equilibrium, the sum of the total consumer surplus and the total producer surplus is
A) $240.
B) $600.
C) $1,000.
D) $0.
E) $60.
