Book: Effiency and Equity - Benefit, cost and surplus

4 important questions on Book: Effiency and Equity - Benefit, cost and surplus

What is the marginal benefit to the entire society?

Marginal social benefit

Firms make a profit when


They receive more from the sale of a good than the cost of producing it.
customers distinguish between value and price, producers distinguish between cost and price.

Cost is what a producer

Gives up
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Price is what a producer

Receives

The question on the page originate from the summary of the following study material:

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