标题: Please answer this question and explain ur answer/numbers. T [打印本页] 作者: krause2 时间: 2013-4-17 17:00 标题: Please answer this question and explain ur answer/numbers. T
Please answer this question and explain ur answer/numbers.
Thanks!
Q.
In a competitive market, the gains to society are maximized under which of the conditions described below by marginal benefit, marginal cost, producer surplus, and consumer surplus, respectively?
A) $2.50; $2.50; $35; $35.
B) $1.00; $1.00; $15; $15.
C) $1.50; $1.50; $45; $30.作者: needhelp1700 时间: 2013-4-17 17:00
I get the fact that MB=MC, but how do you know that at $45, producer surplus is maximized and that at $30, consumer surplus is maximized?作者: leadcfa 时间: 2013-4-17 17:00
45+30 = 75>70>30
You simply take the sum of the consumer and producer values. Larger is better.作者: Nishant1 时间: 2013-4-17 17:00
