(Table: Marginal Benefit,Cost,and Consumer Surplus) Use Table: Marginal Benefit,Cost,and Consumer Surplus.The table shows six consumers' willingness to pay for one iTunes download.If the marginal social cost is constant at ___,then _ consumers will purchase this good,and consumer surplus is ___.

A) $6;three;$13
B) $3.50;four;$20
C) $11;two;$22
D) $40;zero;-$37

Question

(Table: Marginal Benefit,Cost,and Consumer Surplus) Use Table: Marginal Benefit,Cost,and Consumer Surplus.The table shows six consumers' willingness to pay for one iTunes download.If the marginal social cost is constant at _____,then _____ consumers will purchase this good,and consumer surplus is _____.

A) $6;three;$13
B) $3.50;four;$20
C) $11;two;$22
D) $40;zero;-$37

Jesus Lopez · Accepted Answer

Final Answer : B, Explanation :  With a constant marginal social cost of $3.50, four consumers (Consumer 1-4) will purchase the good, resulting in a consumer surplus of $20 ($35 - $15). This is the only option where consumer surplus is positive and the number of consumers purchasing the good is greater than zero.

Definitions

Learning Objectives

Learning Objectives

Related questions