Question

14. If a market is in equilibrium, then we know that price equals marginal cost because a. the market demand curve reflects marginal cost. b. marginal cost never changes. c. the market supply curve reflects marginal cost. d. every firm has the same costs. e. firms are required by law to equate marginal cost to price. 15. A positive externality raises a. marginal social benefits above marginal private benefits. b. marginal benefits above marginal costs. c. marginal private benefits above marginal social benefits. d. marginal private costs above marginal social costs. e. marginal social costs above marginal private costs. 16. Which of the following statements is true? a. A tax assessed on producers shifts up supply. b. A specific tax assessed on producers does not affect consumers. c. A tax assessed on producers shifts down supply. d. An ad valorem tax assessed on producers does not affect consumers e. A tax assessed on producers shifts both the supply and demand curves. 17. A price floor that is higher than the equilibrium market price results in a. a decrease in consumer surplus. b. a decrease in producer surplus but an increase in consumer surplus. c. a gain in both consumer surplus and producer surplus. d. Pareto efficiency e. a decrease in deadweight loss.
please give all the answers. dont need explanations too much

Answer 1

14. d) because this is the condition for perfect competition where price equals marginal cost

15. a) because benefits to society increases

16.a) because a tax will increase the cost of production, hence, decrease supply

17.d) because when price floor is above market price it does nit affect the market and market stays in equilibrium where it is pareto effi