ECON 1900 Lecture Notes - Lecture 12: Economic Surplus

Consumer surplus plus producer surplus equals

a. Deadweight loss.

b. Economic profit.

c. Social welfare.

d. Tax revenue.

Relative to standard monopoly pricing, block pricing:

A. decreases consumer surplus, increases producer surplus, and increases total surplus.

B.increases consumer surplus increases producer surplus and increases total surplus.

C. decreases consumer surplus, increases producer surplus, and decreases total surplus.

D.decreases consumer surplus decreases producer surplus and decreases total surplus.

MSC- 14) If resources are allocated efficiently, A) consumer surplus exceeds producer surplus. B) marginal social cost is minimized. C) producer surplus exceeds consumer surplus. P) the sum of consumer surplus and producer surplus is maximized, E) marginal social benefit is maximized.