Author Question: Jack is a prospective buyer of a commodity that Jill is offering to sell. Social surplus in this ... (Read 37 times)

Zoey63294 · **on:** Jun 29, 2018

Jack is a prospective buyer of a commodity that Jill is offering to sell. Social surplus in this scenario can be maximized:

A) when only Jack is optimizing.
B) when only Jill is optimizing.
C) when both Jack and Jill are optimizing.
D) when neither Jack nor Jill is optimizing.

Question 2

Refer to the above figure. Mario is self-sufficient and so is Mia. Each produces 6 dishes of pasta and 4 pizzas. Mario and Mia decide to specialize and trade.

After they have specialized and traded, compared to the initial situation, Mia's opportunity cost of pasta has ________ and Mario's opportunity cost of a pizza has ________. A) decreased, decreased
B) decreased, increased
C) increased, increased
D) increased, decreased