Author Question: In the above figure, if the price is 1.25 per gallon of milk and 5 million gallons are produced and ... (Read 84 times)

newyorker26 · **on:** Jun 29, 2018

In the above figure, if the price is 1.25 per gallon of milk and 5 million gallons are produced and consumed, then the consumer surplus is ________ and the producer surplus is ________.

A) 3.125 million; 3.125 million
B) 12.5 million; 12.5 million
C) 6.25 million; 6.25 million
D) None of the above answers are correct.

Question 2

The table above shows information about the costs and benefits of a steel smelter that pollutes the air of a city.

If the marginal external cost is 10 per ton at every quantity of steel produced, the equilibrium quantity when the steel industry is unregulated is ________ tons per week. A) 5
B) 15
C) 20
D) 25