Naomi is willing to pay $120 dollars for a multi-cat condo. She ends up paying $90. Naomi's consumer surplus is $30.
Consumer surplus is also known as buyer's surplus. It is the economic measure of a customer's excess benefit. It is calculated by analyzing the difference between the consumer's willingness to pay for a product and the actual price they pay.
Consumer surplus is calculated by:
Consumer surplus = Maximum price buyer is willing to pay – Actual price.
So, Naomi is willing to pay $120 dollars for a multi-cat condo but she ends up paying $90.
Therefore, $120 - $90 = $30
Hence, Naomi's consumer surplus is $30.
To learn more about Consumer surplus here:
brainly.com/question/15224764
#SPJ4
Those who have the most deductions
Answer:
a. marginal revenue is equal to marginal cost.
Explanation:
Monopolistic competition can be defined as an imperfect competition where many producers or organizations sell differentiated products that are not perfect substitutes. Examples of firms or organizations engaging in a monopolistic competition are restaurants, shoes, clothing lines etc.
Generally, a monopolistic competitive market is characterized by the presence of large numbers of firm (producers) and a very low entry barrier.
Hence, in a monopolistic competition, firms have a degree of control over price, make independent decisions and can freely enter or exit the market in the long-run. Therefore, these firms combine elements of both monopoly and competition.
When a monopolistically competitive firm is in long-run equilibrium marginal revenue is equal to marginal cost 
. This ultimately implies that in the long-run, firms engaging in monopolistic competitive market are often going to manufacture the quantity of goods where the marginal cost (MC) curve intersect with the marginal revenue (MR). Also, the price set would be greater than the minimum average total cost (ATC).
<em>Thus, a monopolistic competitive producer has a highly elastic demand curve and firms would eventually break even in the long-run. </em>
Answer:
B) both curves would shift to the right.
Explanation:
The long-run aggregate supply (LRAS) curve will shift to the right because the production costs will decrease, increasing total production output and lowering prices.
The production possibilities frontier (PPF) will also shift to the right because more production output increases total supply, and that increases the production possibilities of the country.
