Author Question: Jason hires Maria to tutor him in economics. Jason is willing to pay 30 for the first hour of ... (Read 63 times)

Arii_bell · **on:** Jun 29, 2018

Jason hires Maria to tutor him in economics. Jason is willing to pay 30 for the first hour of tutoring, 25 for the second, 20 for the third, 15 for the fourth, and 10 for the fifth.

Maria has an opportunity cost per hour of 6 for the first, 9 for the second, 12 for the third, 15 for the fourth, and 18 for the fifth. What will be the equilibrium quantity of hours tutored and the equilibrium price? Explain why this quantity and price is the equilibrium. What is Jason's consumer surplus and what is Maria's producer surplus?

Question 2

A student wrote: A production quota is inefficient because it results in overproduction.

At the quota quantity, marginal social cost is equal to the market price and marginal social benefit is less than the market price, so marginal social cost exceeds marginal social benefit. If you were the instructor, how would you correct this statement?

jaymee143 · **Reply #1 on:** Jun 29, 2018

A FREE account is required to view all solutions!

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 30% of students answer this correctly