Session 4: Economics: Microeconomic Analysis
Reading 14: Efficiency and Equity
LOS d: Discuss the relationship between consumer surplus, producer surplus, and equilibrium.
For a given good or service, the marginal social benefit (MSB) and the marginal social cost (MSC) curves are least accurately described by which of the following?
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A) |
The efficient allocation of resources occurs where the difference between the MSB and MSC curves is maximized. | |
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B) |
Producer surplus is determined by price and the MSC curve and consumer surplus is determined by price and the MSB curve. | |
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C) |
The sum of consumer and producer surpluses is maximized at the intersection of the MSB and MSC curves. | |
The marginal social benefit (MSB) curve is the market demand curve and the marginal cost (MSC) curve and is the market supply curve. At the intersection of the MSB and MSC curves, the sum of producer and consumer surpluses is maximized and society’s resources are being efficiently allocated. | 
发表于 2011-3-6 15:35
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