If a benevolent social planner chooses to produce more than the equilibrium quantity of a good, then ?

Surplus 15/10/2021

A. the value placed on the last unit of production by buyers exceeds the cost of production
B. the cost of production on the last unit produced exceeds the value placed on it by buyers.
C. consumer surplus is maximized
D. total surplus is maximized
E. producer surplus is maximized

Related Mcqs:

    If a buyer’s willingness to pay for a new Honda is Rs20,000 and she is able to actually buy it for Rs18,000 her consumer surplus is ?
    A. Rs18,000 B. Rs20,000 C. Rs2,000 D. Rs0....
    Suppose that the price of a new bicycle is Rs300 Natalie values a new bicycle at Rs 400 it costs Rs200 for the seller to produce the new bicycle. What is the value of total surplus if Natalie buys a new bike ?
    A. Rs500 B. Rs300 C. Rs200 D. Rs400...
    Adam smith’s invisible hand concept suggests that a competitive market outcome ?
    A. maximizes total surplus B. generates equality among the members of society C. minimizes total surplus D. both maximizes total surplus and generates equality among the members of society...
    If buyers are rational and there is no market failure ?
    A. free market solutions are efficient B. free market solutions maximize total surplus C. all of these answers D. free market solutions are equitable E. free market solutions are efficient and free market solutions maximize total surplus...
    If a producer has market power (can influence the price of the product in the market) then free market solutions ?
    A. are equitable. B. are efficient C. maximize consumer surplus D. are inefficient...

Leave a Reply

Your email address will not be published. Required fields are marked *