Multiple Choice
The social surplus in a market is $50.If another economic agent enters the market such that the marginal cost he incurs is $10 and the marginal benefit he receives from the trade is $5,then which of the following statements is true?
A) The social surplus will remain the same.
B) The social surplus will increase by $5.
C) The social surplus will decrease by $5.
D) The social surplus will increase by $10.
Correct Answer:
Verified
Correct Answer:
Verified
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