(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 $2, so the efficient quantity is 5 units. Consumer surplus is the area below the demand curve and above the price line, which is $26.

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