Use the following to answer questions:
-(Table: Marginal Benefit, Cost, and Consumer Surplus) The table Marginal Benefit, Cost, and Consumer Surplus shows six consumers' willingness to pay for one iTunes download. If the marginal social cost is constant at _____, then _____ consumers will purchase this good and consumer surplus is _____.
A) $5; three; $15
B) $5; three; $30
C) $5; two; $15
D) $4; four; $34

Question

Use the following to answer questions: 
-(Table: Marginal Benefit, Cost, and Consumer Surplus) The table Marginal Benefit, Cost, and Consumer Surplus shows six consumers' willingness to pay for one iTunes download. If the marginal social cost is constant at _____, then _____ consumers will purchase this good and consumer surplus is _____.
A) $5; three; $15 
B) $5; three; $30 
C) $5; two; $15 
D) $4; four; $34

Quizplus · Accepted Answer

If the marginal social cost is $5, three consumers will purchase the good (those willing to pay $10, $8, and $7). The consumer surplus is calculated as ($10 - $5) + ($8 - $5) + ($7 - $5) = $15.

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