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review exercise_welfare_sol

review exercise_welfare_sol - Chapter 7 Consumers Producers...

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Chapter 7 Consumers, Producers, and the Efficiency of Markets 8.A result of welfare economics is that the equilibrium price of a product is considered to be the best price because it a. maximizes total revenue for firms and maximizes the quantity supplied of the product. b. maximizes the combined welfare of buyers and sellers. c. minimizes costs and maximizes profits of sellers. d. minimizes the level of welfare payments to those who no longer live below the poverty line. ANS: B PTS: 1 DIF: 2 REF: 7-0 TOP: Economic welfare | Equilibrium price MSC: Interpretive 11. Willingness to pay 12. Consumer surplus is
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