Suppose Jones Sells a Good for $100 at a Yard

question 117

Multiple Choice

Suppose Jones sells a good for $100 at a yard sale. If the producer surplus from the sale is $75, Jones's cost of the good must have been:

• A) $100.
• B) $175.
• C) $25.
• D) equal to the deadweight loss.

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Definitions:

Deregulation

The decrease or removal of governmental control in a specific sector, typically implemented to enhance competitive conditions within that sector.

Industrial Policy

Government measures aimed at improving the competitive stance and capabilities of domestic industries.

Extensive Experiments

A thorough or wide-ranging series of tests or investigations conducted to explore a hypothesis or understand a phenomenon better.

Social Regulation

Policies designed to protect Public welfare, including health, safety, and the environment.