![Demand and Utility-pdf](http://s1.studyres.com/store/data/015710940_1-7afa969493aad838bc5c27cf7795967e-300x300.png)
ch7
... When consumers maximize their utility, they are using resources efficiently. Marginal benefit from a good or service is the maximum price the consumer is willing to pay for an extra unit of that good or service when utility is maximized. ...
... When consumers maximize their utility, they are using resources efficiently. Marginal benefit from a good or service is the maximum price the consumer is willing to pay for an extra unit of that good or service when utility is maximized. ...
Chapter 1
... 17) If a market produces a level of output that exceeds the competitive equilibrium output, then A) social welfare will be higher. B) producer surplus will be higher. C) marginal cost will exceed price. D) All of the above. Answer: C Diff: 1 Topic: Competition Maximizes Welfare 18) If an economist s ...
... 17) If a market produces a level of output that exceeds the competitive equilibrium output, then A) social welfare will be higher. B) producer surplus will be higher. C) marginal cost will exceed price. D) All of the above. Answer: C Diff: 1 Topic: Competition Maximizes Welfare 18) If an economist s ...
Consumers, Producers, and the Efficiency of
... In panel (a), the price is P1, the quantity supplied is Q1, and producer surplus equals the area of the triangle ABC. When the price rises from P1 to P2, as in panel (b), the quantity supplied rises from Q1 to Q2, and the producer surplus rises to the area of the triangle ADF. The increase in produc ...
... In panel (a), the price is P1, the quantity supplied is Q1, and producer surplus equals the area of the triangle ABC. When the price rises from P1 to P2, as in panel (b), the quantity supplied rises from Q1 to Q2, and the producer surplus rises to the area of the triangle ADF. The increase in produc ...
International Economics
... Production Frontier for Nation 1. Salvatore: International Economics, 11th Edition © 2013 John Wiley & Sons, Inc. ...
... Production Frontier for Nation 1. Salvatore: International Economics, 11th Edition © 2013 John Wiley & Sons, Inc. ...
Introduction Economics Today
... individuals to pursue religion within their own denomination, rather than urging everyone to participate in a one-size-fits-all theology. ...
... individuals to pursue religion within their own denomination, rather than urging everyone to participate in a one-size-fits-all theology. ...
Managerial Economics
... Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. ...
... Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. ...
Chapter 4 Individual and Market Demand
... Clean Air Act in 1977 and has since amended it a number of times. ...
... Clean Air Act in 1977 and has since amended it a number of times. ...
Chapter 4
... A table that shows the relationship between the price of a good and the quantity supplied. ...
... A table that shows the relationship between the price of a good and the quantity supplied. ...
CHAPTER OVERVIEW
... 1. Monopoly power is needed with the ability to control output and price. 2. The firm must have the ability to segregate the market, to divide buyers into separate classes that have a different willingness or ability to pay for the product (usually based on differing elasticities of demand). 3. Buye ...
... 1. Monopoly power is needed with the ability to control output and price. 2. The firm must have the ability to segregate the market, to divide buyers into separate classes that have a different willingness or ability to pay for the product (usually based on differing elasticities of demand). 3. Buye ...
Externality
![](https://commons.wikimedia.org/wiki/Special:FilePath/Diesel-smoke.jpg?width=300)
In economics, an externality is the cost or benefit that affects a party who did not choose to incur that cost or benefit.For example, manufacturing activities that cause air pollution impose health and clean-up costs on the whole society, whereas the neighbors of an individual who chooses to fire-proof his home may benefit from a reduced risk of a fire spreading to their own houses. If external costs exist, such as pollution, the producer may choose to produce more of the product than would be produced if the producer were required to pay all associated environmental costs. Because responsibility or consequence for self-directed action lies partly outside the self, an element of externalization is involved. If there are external benefits, such as in public safety, less of the good may be produced than would be the case if the producer were to receive payment for the external benefits to others. For the purpose of these statements, overall cost and benefit to society is defined as the sum of the imputed monetary value of benefits and costs to all parties involved. Thus, unregulated markets in goods or services with significant externalities generate prices that do not reflect the full social cost or benefit of their transactions; such markets are therefore inefficient.