In the above figure, if the price is 1.25 per gallon of milk and ...

[newyorker26]

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

[stanleka1]

Answer to Question 1

A

Answer to Question 2

C

[newyorker26]

Thanks for the timely response, appreciate it

[kishoreddi]

TYSM