Exam 5: Efficiency and Equity

Hummel is a line of figurines based on the artistic style of German nun Maria Innocentia Hummel and have become a collector's item. The Hummel figurines are almost uniformly "cute." Lukas, Felix, Anya, and Hannah sell Hummel figurines through the internet. Their willingness to sell price for one figurine is: Lukas $240, Felix $180, Anya $150, Hannah $130. Suppose the price of a Hummel figurine is $150, what is Felix's producer surplus?

-In the above figure, if output is 10 units, then the total deadweight loss is

The producer surplus on a unit of output is the difference between the market price and the opportunity cost of producing it.

What approach to fairness argues in favor of government policies that redistribute income so that there is more equality of income?

-The schedules in the table give the marginal social benefit and marginal social cost of a DVD. If the number of DVD produced is cut to 2 a week, then the ________.

If the price of a pizza increases and the demand curve for pizza does not shift, then the consumer surplus from pizza will ________.

Why do societies face a tradeoff between the size of the economic pie and the degree of equality with which it is shared?

Robert Nozick asserts that fairness and efficiency result if

-In the table above, if there are 80 umbrellas produced, the deadweight loss from the 80th umbrella is

-The figure above shows the market for milk. If one firm owns all the milk outlets in the city and sells 100 gallons of milk,

When the Smiths were shopping for their present home, the asking price from the previous owner was $250,000.00. The Smiths had decided they would pay no more than $245,000.00 for the house. After negotiations, the Smiths actually purchased the house for $239,000.00. They, therefore, enjoyed a consumer surplus of

Currently kidneys are allocated based on the needs of each perspective recipient, their blood type, and the urgency of their case. An alternative way to allocate kidneys is to go by the order in which patients were placed on the waiting list. In that case, the allocation of resources is made using

-In the above figure, what is the amount of producer surplus at the efficient quantity?

-The above figure illustrates the marginal social benefit and marginal social cost for chicken sandwiches. If the quantity is decreased from 6 to 3 and the price increases from $3 to $4, consumer surplus will decrease by

Producer surplus is the ________ summed over the quantity sold.

-The figure above shows the market for coffee. If the government pays the coffee producers a subsidy and production increases to 30 million pounds per day, the market is

A new car in the dealer's showroom had a sticker price of $35,900. Sally liked the car but decided she would pay no more than $32,000 for it, otherwise she would do without it. After haggling with the dealer, she purchased the car for $31,500. Did she gain any consumers surplus? If so, how much? If not, why not?

-In the above figure, the efficient quantity of milk is

In a competitive equilibrium, the total consumer surplus must equal the total producer surplus.

Producer surplus is the price received ________ summed over the quantity sold.