Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 5 - Market Failures: Public Goods and Externalities - Problems - Page 113: 3

Answer

Total surplus if: Barb buys from Courtney: 9 Bob buys from Carlos: 10 Bob buys from Chad: 5 Largest total surplus: Bob buys from Carlos

Work Step by Step

Total surplus if: Barb buys from Courtney: 5 + 4 = 9 Bob buys from Carlos: 5 + 5 = 10 Bob buys from Chad: 5 + 0 = 5 Largest total surplus: both have the highest consumer and producer surplus, and adding them would give the highest total surplus
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.