Exam 7: Consumers, Producers, and the Efficiency of Markets

Table 7-16 The following table represents the costs of five possible sellers. Seller Cost ($) -Refer to Table 7-16. If each producer has one unit available for sale, and if the market equilibrium price is $70, how much is the combined total cost of all participating sellers in the market?

When policymakers are considering a particular action, they can use consumer surplus as a(n)

Market power refers to the

Which of the following will cause a decrease in producer surplus?

Which of the following events would increase producer surplus?

Table 7-12 The only four producers in a market have the following costs: -Refer to Table 7-12. If Evan, Selena, Angie, and Kris sell the good, and the resulting producer surplus is $700, then the price must have been

Table 7-19 The following table shows the cost of producing a good for the only four producers in a market. -Refer to Table 7-19. If these four producers bid in an auction to supply one unit to a consumer, at what price will the good be sold?

Even though participants in the economy are motivated by self-interest, the "invisible hand" of the marketplace guides this self-interest into promoting general economic well-being.

Figure 7-22 -Refer to Figure 7-22. The efficient price is

Which of the Ten Principles of Economics does welfare economics explain more fully?

Scenario 7-2 Suppose market demand and market supply are given by the equations: -Refer to Scenario 7-2. Suppose a reduction in input prices shifts the market supply curve to By how much does total consumer surplus increase for those consumers who were already willing to purchase the good with the original supply curve?

Figure 7-22 -Refer to Figure 7-22. If 110 units of the good are bought and sold, then

Table 7-19 The following table shows the cost of producing a good for the only four producers in a market. -Refer to Table 7-19. If the market equilibrium price is $28, what is total producer surplus in the market?

If the demand for light bulbs increases, producer surplus in the market for light bulbs

Efficiency refers to whether a market outcome is fair, while equality refers to whether the maximum amount of output was produced from a given number of inputs.

The area below the price and above the supply curve measures the producer surplus in a market.

The lower the price, the lower the consumer surplus, all else equal.

Table 7-15 -Refer to Table 7-15. You and your best friend want to hire a professional photographer to take pictures of your two families. The table shows the costs of the four potential sellers in the local photography market. You and your friend take bids from the sellers. Who offers the two winning bids, and what do they offer to charge for the photography sessions?

Jeff decides that he would pay as much as $2,000 for a new laptop computer. He buys the computer and realizes a consumer surplus of $300. How much did Jeff pay for his computer?

Economists normally assume people's preferences should be