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# econ6 - Submitted by Le Thao(THAOLE2 on 10:13:12 AM Points...

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Submitted by Le, Thao (THAOLE2) on 10/10/2011 10:13:12 AM Points Awarded 96.60 Points Missed 5.40 Percentage 94.7% 1. A market equilibrium will generate the largest possible surplus when: A) there are no external benefits and external costs. B) there is perfect competition. C) perfect information is available. D) all of the above. Points Earned: 5.0/5.0 Correct Answer(s): D 2. If a consumer buys a good we know that her willingness to pay: 5.0/5.0 Correct Answer(s): D 3.

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Suppose that the price of a hamburger is \$3. Victoria is willing to pay \$5 for the first hamburger, David is willing to pay \$4 for the second hamburger, Kelly is willing to pay \$3 for the third hamburger, and Antony is willing to pay \$2 for the fourth hamburger. In equilibrium, what is the total consumer surplus from the consumption of hamburger? 4. In Figure 6.1, the consumer surplus is equal to: 5.
If the good in Figure 6.1 were free: A) consumer surplus would equal \$450 and consumer expenditure would be \$0. B) consumer surplus and consumer expenditure would both be maximized. C) consumer surplus and consumer expenditure would both be zero. D) consumer surplus would be maximized but consumer expenditure would be impossible to calculate. Points Earned: 5.0/5.0 Correct Answer(s): A

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econ6 - Submitted by Le Thao(THAOLE2 on 10:13:12 AM Points...

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