Figure 7-20
-Refer to Figure 7-20.For quantities greater than M,the value to the marginal buyer is
A)greater than the cost to the marginal seller,so increasing the quantity increases total surplus.
B)less than the cost to the marginal seller,so increasing the quantity increases total surplus.
C)greater than the cost to the marginal seller,so decreasing the quantity increases total surplus.
D)less than the cost to the marginal seller,so decreasing the quantity increases total surplus.

Question

Figure 7-20 
-Refer to Figure 7-20.For quantities greater than M,the value to the marginal buyer is
A)greater than the cost to the marginal seller,so increasing the quantity increases total surplus. 
B)less than the cost to the marginal seller,so increasing the quantity increases total surplus. 
C)greater than the cost to the marginal seller,so decreasing the quantity increases total surplus. 
D)less than the cost to the marginal seller,so decreasing the quantity increases total surplus.

Quizplus · Accepted Answer

For quantities greater than M, the value to the marginal buyer is less than the cost to the marginal seller, so decreasing the quantity increases total surplus.

Figure 7-20 -Refer to Figure 7-20.For Quantities Greater Than M,the Value to M,the