Author Question: In the summer 2012 the lobster catch in Maine was especially large, but instead of celebrating the ... (Read 77 times)

LCritchfi · **on:** Jun 29, 2018

In the summer 2012 the lobster catch in Maine was especially large, but instead of celebrating the fisherman were suffering from a lower total revenue.

(Source: New York Times, July 28, 2012 ) We learn from the article that despite the larger quantity of lobster caught, the total revenue of the fisherman decreased. This fact means that the demand for lobster is A) unit elastic.
B) elastic.
C) inelastic.
D) perfectly elastic.

Question 2

Underproduction compared to the efficient amount implies that for the last unit produced

A) marginal social benefit exceeds marginal social cost.
B) marginal social benefit equals marginal social cost.
C) marginal social cost exceeds marginal social benefit.
D) the deadweight loss is zero.