Assessment 6.2 Study Guide Graded A+

The marginal benefit of the 200th unit is equal to ____ and the marginal cost of the 200th unit us equal to ____. {Ans: $8; $4}Ceteris paribus, if the marginal benefit of banana decreases as the quantity of bananas consumed increases, then: {Ans: The demand curve for bananas will slope downward to the right}If a price floor is imposed at $8, total surplus (consumer plus producer surplus) is equal to: {Ans: $1,200}If a price floor is imposed at $8, the quantity bought and sold (exchange) falls from____ in equilibrium to ____ units. {Ans: 400; 200}Producer surplus occurs when: {Ans: an output sells for a price that is higher than its marginal cost to the seller.}In equilibrium, producer surplus is equal to: {Ans: $800}Bert is willing to pay $50 for a jacket that is on sale for $39. If Bert buys the jacket, his consumer surplus will be: {Ans: $11}If a price floor is imposed at $8, deadweight loss is equal to : {Ans: $400}Which of the following statements best illustrates the existence of producer surplus? {Ans: Sally is paid $10 hour to baby sit even though she is willing to baby