Which of the following is true?
A)If the consumer is a buyer of several units of a good, the earlier units will have greater marginal value and therefore create more consumer surplus, because marginal willingness to pay falls as greater quantities are consumed in any period.
B)When some units of output can be produced at a cost that is lower than the market price, the seller receives a surplus, or net benefit, from producing those units.
C)At the market equilibrium both consumers and producers benefit from trading every unit up to the market equilibrium output.
D)All of the above are true.

Question

Which of the following is true?​
A)​If the consumer is a buyer of several units of a good, the earlier units will have greater marginal value and therefore create more consumer surplus, because marginal willingness to pay falls as greater quantities are consumed in any period.
B)​When some units of output can be produced at a cost that is lower than the market price, the seller receives a surplus, or net benefit, from producing those units.
C)​At the market equilibrium both consumers and producers benefit from trading every unit up to the market equilibrium output.
D)​All of the above are true.

Quizplus · Accepted Answer

Each statement accurately reflects economic principles. A) describes the law of diminishing marginal utility, B) explains producer surplus, and C) outlines the mutual benefits of trade at market equilibrium.

Which of the Following Is True?​

Which of the Following Is True?