Author Question: Costs that are incurred when people engage in a trade A) are a waste of resources because they do ... (Read 95 times)

Kthamas · **on:** Jun 29, 2018

Costs that are incurred when people engage in a trade

A) are a waste of resources because they do not create benefits of equal or greater value.
B) can be eliminated by substituting government regulation for voluntary exchange.
C) reduce the amount of exchange that occurs.
D) rise as the number of middlemen increases.

Question 2

If a seller's reservation value for a good is 10 and the price at which the good is sold is 15, his producer surplus is:

A) 25.
B) 150.
C) 1.5.
D) 5.