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The consumer surplus and producer surplus.
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Text solutionVerified
Step 1: To determine the consumer surplus and producer surplus.
Explanation:
When the consumer’s utility surpasses the price paid, then the consumer surplus is generated. Similarly, when producers receive a larger price than MC (marginal cost), then the producer surplus is formed. By producing up to the point where the marginal benefit (MB) is equal to the marginal cost (MC), both the consumer surplus and producer surplus can be determined.
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Question Text | The consumer surplus and producer surplus. |
Topic | All Topics |
Subject | Economics |
Class | Grade 10 |
Answer Type | Text solution:1 |