Table 10-4

-Refer to Table 10-4.Take into account private and external costs and assume the quantity of output is always a whole number (that is,fractional units of output are not possible).The maximum total surplus that can be achieved in this market is
A) $19.
B) $21.
C) $24.
D) $28.

Question

Table 10-4
 
-Refer to Table 10-4.Take into account private and external costs and assume the quantity of output is always a whole number (that is,fractional units of output are not possible).The maximum total surplus that can be achieved in this market is
A) $19. 
B) $21. 
C) $24. 
D) $28.

Quizplus · Accepted Answer

To find the maximum total surplus, we need to find the quantity where the sum of the consumer surplus and the producer surplus is maximized. At a quantity of 4, the consumer surplus is $12 and the producer surplus is $12, yielding a total surplus of $24, which is the highest possible total surplus in the market. Therefore, the answer is C.

Table 10-4 -Refer to Table 10-4.Take into Account Private and External Costs