Answer Happy

1) Suppose the equilibrium price and quantity for a product are
$50 and 100 units respectively. What is the marginal benefit to
consumers and the marginal cost to suppliers of an additional unit
of the product?
A) The marginal benefit is $50 and the marginal cost is $50.
B) The marginal benefit is $50 and the marginal cost is
$100.
C) The marginal benefit is $100 and the marginal cost is
$100.
D) There is not enough information to compute the marginal
benefit and marginal cost.
2) Suppose that the cost of an important input a firm uses to
produce a certain product increases. As a result, you would
expect
A) the supply curve for the product to shift left (i.e.,
decrease).
B) there to be a movement upward/rightward along the supply
curve.
C) there to be a movement downward/leftward along the supply
curve.
D) the demand curve for the product to shift left (i.e.,
decrease).