Figure 10-11 -Refer to Figure 10-11. Taking into Account Private Value and Private

question 108

Multiple Choice

Figure 10-11
-Refer to Figure 10-11. Taking into account private value and external benefits, the maximum total surplus that can be achieved in this market is

• A)$5,880.
• B)$9,480.
• C)$13,230.
• D)$15,360.

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Definitions:

Variable Costs

Costs that vary directly with the level of production or the volume of output.

Lease

A contract by which one party conveys land, property, services, or goods to another for a specified period, usually in exchange for periodic payments.

Bouquets

A collection or arrangement of flowers.

Short-Run Marginal Cost

The increase in cost a company faces to produce one additional unit of output when some inputs are fixed in the short term.