Figure 15-14 -Refer to Figure 15-14.To Maximize Total Surplus,a Benevolent Social Planner

question 406

Multiple Choice

Figure 15-14

-Refer to Figure 15-14.To maximize total surplus,a benevolent social planner would choose which of the following outcomes?

• A) Q = 30 and P = 30
• B) Q = 30 and P = 60
• C) Q = 45 and P = 45
• D) Q = 60 and P = 30

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Definitions:

Economic Profit

The difference between total revenue and total costs, including both explicit and opportunity costs.

Investment Return

The gain or loss on an investment over a specified period, usually expressed as a percentage of the investment's cost.

Capital Income

Income earned on savings that have been put to use through financial capital markets.

Dividends

Payments made by a corporation to its shareholder members, typically from profits.