Author Question: Leisure Land produces only sun screen and camel rides. The table shows the marginal benefit and ... (Read 130 times)

asan beg · **on:** Jun 29, 2018

Leisure Land produces only sun screen and camel rides. The table shows the marginal benefit and marginal cost schedules for sun screen and camel rides. The allocatively efficient number of camel rides is ________.

A) 1 ride per day because the marginal benefit exceeds the marginal cost by as much as possible
B) 2 rides per day
C) 4 rides per day
D) 6 rides per day because that is the maximum number of rides

Question 2

During the first 6 months of 2008, the United States imported from Africa, Asia, and Latin America more than 1.6 billion pounds of coffee and did not export any coffee.

How is the gain from imports distributed between consumers and domestic producers? A) U.S. producer surplus shrinks.
B) U.S. consumer surplus increases.
C) Total U.S. surplus increases.
D) All the above answers are correct.