Moving production from a high-cost producer to a low-cost producer will

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Question: Moving production from a high-cost producer to a low-cost producer will

First, note that the list of answer choices is not provided in the data you shared. Without the explicit options to evaluate, I can still explain the typical economic intuition behind the statement and how it relates to total surplus.

General concept: When production shifts from a high-cost producer to a low-cost producer, the overall cost of producing the good decreases. With lower production costs, the same quantity can be produced more cheaply, or more quantity can be produced at the same cost. This tends to expand total surplus in a market because:
- Consumer surplus may rise if lower costs translate into lower prices for buyers or greater availability of the good.
- Producer surplus can change: the new low-cost producer might capture more market share or the industry as a whole may operate more efficiently, increasing profits for some producers while reducing profits for others due to price effects.
- Total surplus, defined as the sum of consumer surplus and producer surplus, generally increases when production becomes cheaper and the market allocates resources more efficiently.

Why some incorrect options (in a typical multiple-choice set) might be wrong:
- If an option suggested that total surplus would stay the same, it would ignore the efficiency gains from cost reductions and the potential for lower prices or greater output.
- If an option claimed that only consumer surplus or only producer surplus would rise, it would overlook the interaction between buyers and sellers in a competitive market and the fact that some parties may lose as others gain when shifting production.
- If an option said that moving production would decrease total surplus due to harms like market power or distributional effects, it would be missing the standard efficiency argument that cost reductions improve overall welfare in a competitive setting.

Because the exact answer choices are missing, this explanation centers on the core economic reasoning: shifting production toward the lowest-cost producer reduces overall costs and expands total surplus, assuming competitive markets and no countervailing distortions.

Moving production from a high-cost producer to a low-cost producer will

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Question at position 6 What are the values of total surplus before and after tax imposition?(TS0=10.5,TS1=6)\left(TS^0=10.5,TS^1=6\right)(TS0=12.5,TS1=10)\left(TS^0=12.5,TS^1=10\right)(TS0=13.5,TS1=12)\left(TS^0=13.5,TS^1=12\right)(TS0=15,TS1=10.5)\left(TS^0=15,TS^1=10.5\right)

Table 7-11[table] Price(Dollars per unit) | Quantity Demanded(Units) | Quantity Supplied(Units) 12.00 | 0 | 36 10.00 | 3 | 30 8.00 | 6 | 24 6.00 | 9 | 18 4.00 | 12 | 12 2.00 | 15 | 6 0.00 | 18 | 0 [/table]Refer to Table 7-11. At a price of $2.00, total surplus is

Figure 8-1Refer to Figure 8-1.Suppose the government imposes a tax of P'–P'''. Total surplus before the tax is measured by the area

Figure 8-1Refer to Figure 8-1.Suppose the government imposes a tax of P'–P'''. Total surplus before the tax is measured by the area

Figure 8-1Refer to Figure 8-1.Suppose the government imposes a tax of P'–P'''. Total surplus before the tax is measured by the area

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Moving production from a high-cost producer to a low-cost producer will

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Question at position 6 What are the values of total surplus before and after tax imposition?(TS0=10.5,TS1=6)\left(TS^0=10.5,TS^1=6\right)(TS0=12.5,TS1=10)\left(TS^0=12.5,TS^1=10\right)(TS0=13.5,TS1=12)\left(TS^0=13.5,TS^1=12\right)(TS0=15,TS1=10.5)\left(TS^0=15,TS^1=10.5\right)

Table 7-11​[table] Price(Dollars per unit) | Quantity Demanded(Units) | Quantity Supplied(Units) 12.00 | 0 | 36 10.00 | 3 | 30 8.00 | 6 | 24 6.00 | 9 | 18 4.00 | 12 | 12 2.00 | 15 | 6 0.00 | 18 | 0 [/table]​​​Refer to Table 7-11. At a price of $2.00, total surplus is

Figure 8-1Refer to Figure 8-1.Suppose the government imposes a tax of P'–P'''. Total surplus before the tax is measured by the area

Figure 8-1Refer to Figure 8-1.Suppose the government imposes a tax of P'–P'''. Total surplus before the tax is measured by the area

Figure 8-1Refer to Figure 8-1.Suppose the government imposes a tax of P'–P'''. Total surplus before the tax is measured by the area

Figure 8-1Refer to Figure 8-1.Suppose the government imposes a tax of P'–P'''. Total surplus before the tax is measured by the area

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Table 7-11[table] Price(Dollars per unit) | Quantity Demanded(Units) | Quantity Supplied(Units) 12.00 | 0 | 36 10.00 | 3 | 30 8.00 | 6 | 24 6.00 | 9 | 18 4.00 | 12 | 12 2.00 | 15 | 6 0.00 | 18 | 0 [/table]Refer to Table 7-11. At a price of $2.00, total surplus is