Use the Following to Answer Question

question 48

Multiple Choice

Use the following to answer question:
-(Table: Willingness to Pay for Peanuts) Using the table Willingness to Pay for Peanuts,if the price of a bag of peanuts is $4,what is the value of George's consumer surplus?

• A)$4
• B)$3
• C)$6
• D)$10

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Definitions:

Marginal Product

The increase in output resulting from the addition of one more unit of a certain input, while all other inputs are kept constant.

Units Per Period

A measure of productivity or output over a given time frame, indicating the number of units produced or sold.

Diminishing Marginal Returns

The principle that adding more of one factor of production, while holding others constant, will eventually yield lower additional outputs.

Total Product

The overall quantity of output produced by a firm from a given quantity of inputs.