(Table: Marginal Benefit, Cost, and Consumer Surplus) The table Marginal Benefit, Cost, and Consumer Surplus shows six consumers' willingness to pay (his or her individual marginal benefit) for one iTunes download of a Jack Johnson song.If the marginal social cost is constant at ________, then consumers will purchase this good and consumer
Surplus is _.

Question

Quizplus · Accepted Answer

The marginal social cost is constant at $5. The marginal benefit for the first three consumers is greater than the marginal social cost, so they will purchase the good. The consumer surplus is the difference between the marginal benefit and the marginal social cost, so the consumer surplus for the first three consumers is $15.

(Table: Marginal Benefit, Cost, and Consumer Surplus) the Table Marginal