| Selected Answers in Chapter 9 |

| | So the benefit to **consumers** of **producing** one more unit of output (the marginal benefit) is larger than the cost of **producing** that output (the marginal cost), meaning that it would be economically efficient to **produce** that an unit of output. |

| | **Consumer** **surplus** is the area of a triangle with height $20 (since the price is $10 and the demand curve intercepts the Y axis at a price of $30) and base 20, so **consumer** **surplus** is $200. |

| | **Consumer** **surplus** is the area of a triangle with height $20 (since the price is $10 and the demand curve intercepts the Y axis at a price of $30) and base 200, so **consumer** **surplus** is $2000. |

| www.econ.rochester.edu /eco108/ch9/ans9.htm (2314 words) |