-The Above Figure Shows Dana's Marginal Benefit Curve for Ice

question 129

Multiple Choice

-The above figure shows Dana's marginal benefit curve for ice cream. If the price of ice cream is $2 per gallon and Dana is allowed to buy only 8 gallons of ice cream, then her consumer surplus on the 8th gallon is

• A) $1.
• B) $2.
• C) $3.
• D) $8.

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Definitions:

Scientific Thinking

A method of inquiry that involves observing phenomena, asking questions, forming hypotheses, conducting experiments, and drawing conclusions based on evidence.

Assumptions

Conditions or principles that are taken as true or as certain to happen, without proof, for the purpose of argument or investigation.

Factor Of Production

A resource used in the production process to generate goods and services, such as labor, land, and capital.

Output

The aggregate output of goods or services from a firm, industry, or the economy as a whole.