Question 1

If marginal benefit is larger than marginal cost

Group of answer choices

there is no efficient quantity

the efficient quantity is lower than the current quantity

the efficient quantity is higher than the current quantity

the current quantity is efficient

Question 2

Which of the following is not true about producer surplus?

Group of answer choices

It is part of total welfare

It represents the value of producers in excess of variable production costs.

It depends on the market price and quantity

It is the area above the price and below the demand curve

Question 3

If the equilibrium price is $5 and the demand curve is Q=10- P consumer surplus is:

Group of answer choices

10

25

12.5

5