Question

When policymakers are considering a particular action, they can use consumer surplus as a(n)A. objective measure of the benefits to buyers as determined by policymakers.B. measure of the benefits to buyers as the buyers perceive them.C. potentially flawed measure of the benefits to buyers if the buyers are not rational.D. Both b) and c) are correct.

Answer 1

The correct answer is letter D

• measure of the benefits to buyers as the buyers perceive them.
• potentially flawed measure of the benefits to buyers if the buyers are not rational