If the marginal cost of producing every quantity decreases, all the following occur except _____________.

minimum supply price does not change
the efficient quantity increases
the consumer surplus increases
marginal benefit of the last unit bought does not change

Which of the following statements about a competitive market is incorrect?

A price floor makes the market less efficient.
A price ceiling makes the market more efficient.
Overproduction reduces consumer surplus and producer surplus.
Underproduction creates a deadweight loss.

The schedules in the table give the marginal benefit and marginal cost of videotapes. If there are no external benefits or external costs, the efficient number of videotapes to produce is ________ a week.

any number less than 3
3
5
1

The schedules in the table give the marginal benefit and marginal cost of videotapes. At the efficient quantity, the minimum-supply price of a videotape is ______________ and the value of a videotape is ________________.

$8; $12
$10; $8
$8; $10
$10; $10

The schedules in the table give the marginal benefit and marginal cost of a videotape. At the efficient quantity of videotapes, consumer surplus is _____ a week, and producer surplus is _____ a week.

$33; $27
$2; $2
$3; $3
$10; $10

The schedules in the table give the marginal benefit and marginal cost of a videotape. If the opportunity cost of producing a videotape increases by $2, then the efficient number of videotapes is _____ a week.

2
4
1
5

The schedules in the table give the marginal benefit and marginal cost of a videotape. If the number of videotapes produced is cut to 2 a week, then the ___________________.

opportunity cost of the second videotape is $11
value of the second videotape is $10
price is $9 a videotape
minimum supply price of the second videotape is $9

The figure illustrates the market for bagels. If the number of bagels produced is cut from 20 to 10 an hour, consumer surplus decreases by ___________.

$2.50 an hour
$7.50 an hour
$5.00 an hour
$0.50 a bagel

The figure illustrates the market for bagels. If the number of bagels is cut from 20 to 10 an hour, the deadweight loss is ____________________.

-$5.00 an hour
$5.00 an hour
$0 an hour
$0.50 a bagel

The figure illustrates the market for bagels. If the number of bagels is increased from 20 to 30 an hour, consumer surplus plus producer surplus ____________ and deadweight loss is _______________.

increases; positive
increases; negative
decreases; positive
decreases; negative

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