At the Output Where the Combined Amounts of Consumer and Producer

question 126

Multiple Choice

At the output where the combined amounts of consumer and producer surplus are largest,

• A) the areas of consumer and producer surplus necessarily are equal.
• B) the maximum willingness to pay for the last unit of output equals the minimum acceptable price of that unit of output.
• C) consumer surplus exceeds producer surplus by the greatest amount.
• D) marginal benefit exceeds marginal cost by the greatest amount.

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Definitions:

Venules

Small veins that allow deoxygenated blood to return from the capillary beds to larger veins.

Arterioles

Small arteries that lead to capillaries, controlling blood flow and pressure through regulation of their diameter.

Large Arteries

Blood vessels that carry blood away from the heart, characterized by their large diameter and elastic walls to withstand high pressure.

Large Veins

Vessels that carry blood towards the heart, generally transporting deoxygenated blood from various parts of the body.