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We can say that the allocation of resources is

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3.We can say that the allocation of resources is efficient ifa.producer surplus is maximized.b.consumer surplus is maximized.c.total surplus is maximized.d.sellers’ costs are minimized.
4.It is efficient to produce an additional shirt if
5.In the above figure, what is the marginal benefit of the four-hundredth pretzel?
6.Nick can purchase each milkshake for $2. For the first milkshake purchased Nick iswilling to pay $4, for the second milkshake $3, for the third milkshake $2 and forthe fourth milkshake $1. What is the value of Nick’sconsumer surplus?
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7.In the above figure, the producer surplus would be zero if the price per ton of wheatwasa.$25.b.$50.c.$75.d.$100.
8.When the competitive market is using its resources efficiently, the
9.Suppose Larry, Moe and Curly are bidding in an auction for a mint-conditionvideo of Charlie Chaplin's first movie. Each has in mind a maximum amount thathe will bid. This maximum is called
10.Denise values a stainless steel dishwasher for her new house at $500. The actualprice of the dishwasher is $650. Denise
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surplus of $150.b.buys the dishwasher and on her purchase she experiences a consumersurplus of $-150.c.does not buy the dishwasher and on her purchase she experiences aconsumer surplus of $150 on her non-purchase.d.does not buy the dishwasher and on her purchase she experiences aconsumer surplus of $0 on her non-purchase.11.Which of the following isnottrue when the price of a good or service falls?a.Buyers who were already buying the good or service are better off.b.Some new buyers, who are now willing to buy, enter the market.c.The total consumer surplus in the market increases.d.The total value of purchases before and after the price change is the same.
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