Exam 5: Efficiency and Equity

-The figure above shows the market for umbrellas in Sunville. Suppose one firm owns all umbrella stores in Sunville and charges $40 per umbrella. In this situation, the market for umbrellas is

Which of the following can prevent markets from reaching efficiency? I. price regulations that cap the price that may be charged II) increasing marginal cost III) monopoly

If the marginal social benefit exceeds the marginal social cost of producing the next kilowatt hour of electricity, then it is efficient to produce as many kilowatt hours as possible.

If there is an external cost from making paper, an unregulated competitive market produces

The figure shows the competitive market for milk. -In the figure above, when the quantity of milk produced is 300 gallons per day, what is the deadweight loss?

When scarce resources can serve only one user at a time in sequence, which method works well for allocating the scarce resources?

-In the above figure,

"A demand curve is the same as a marginal cost curve." Is this statement correct or incorrect? Explain your answer.

Which of the following is inconsistent with Robert Nozick's view of fairness as expressed in his book Anarchy, State, and Utopia?

What is the relationship between the marginal social benefit of milk and marginal social cost of milk when the efficient quantity of milk is produced?

-The figure above shows the market supply curve for pizzas. a) What is the marginal social cost of the 20th pizza? b) What is the minimum supply price of the 20th pizza? c) If the price is $6 per pizza, what is the producer surplus for the 20th pizza? d) If the price is $6 per pizza, what is the total producer surplus? e) If the price is $8 per pizza, what is the total producer surplus? f) If the price is $10 per pizza, what is the total producer surplus?

-The table gives the demand and supply schedules for milk in Cowburg. Assume that the only people who benefit from milk are the people who consume it and the only people who bear the cost of milk are the people who produce it. a) Draw the market demand and market supply curves. What are the equilibrium price and equilibrium quantity of milk? Is this equilibrium efficient? Explain. b) What is the maximum price that consumers are willing to pay for the 500th gallon? What is the minimum price that producers are willing to accept for the 500th gallon? Explain. c) Are 500 gallons a day less than or greater than the efficient quantity? Explain your answer. d) If the market for milk is efficient, what is the consumer surplus? Show it on your graph. What is the producer surplus? Show it on your graph. e) If farmers produce 500 gallons a day, is there a deadweight loss? If yes, what is it? Explain your answer using your graph.

Quantity of videos demanded -Given the individual demands for video downloads in the above table, and assuming that these three people are the only ones in the market, which of the following statements is NOT true about market demand for video downloads?

Utilitarianism argues that:

-In the figure above, when production is 3 units with a price of $3, the consumer surplus equals

Moving down along the market demand curve for hot dogs, the

-The figure above shows the market for coffee. If 30 pound of coffee a month are available, the ________ price that consumers are willing to pay for the last pound is ________.

How can a person argue that health care services in America are provided efficiently, but not fairly?

Can both producer surplus and consumer surplus exist at the same time in a particular market?

-Based on the above table, which of the following is the efficient quantity of output?