In Order to Maximize a Market's Consumer Surplus and Producer

question 46

Multiple Choice

In order to maximize a market's consumer surplus and producer surplus:

• A)output should be expanded if marginal cost exceeds marginal benefit
• B)output should be reduced if marginal benefit exceeds marginal cost
• C)the market may need to move away from its competitive equilibrium
• D)marginal benefit and marginal cost should be equal at the last unit produced
• E)the difference between marginal benefit and marginal cost should be maximized at the last unit produced

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Definitions:

Western Territories

Regions in the western part of the United States or other countries that are not yet fully incorporated into the main political structure.

Political Equals

Political equals refer to individuals or entities possessing the same rights and responsibilities within a political system, emphasizing equality before the law and in the democratic process.

Alexander Hamilton

A founding father of the United States, first Secretary of the Treasury, and influential in the creation of the national banking system and economic policy.

Anti-Federalist

Opponents of the ratification of the U.S. Constitution in the late 18th century, favoring a weaker central government and greater state autonomy.