Figure: Demand and Supply (Figure: Demand and Supply) Refer to the figure. Which of thefollowing statements is TRUE?
I. Buyers are willing to pay $20 for the 16th unit of output andit costs sellers $60 to produce that unit
II.The gains from trade are maximized at 20 units of output
III. At four units of output, there are unexploited gains fromtrade.IV. A free market is likely to produce less than 12 units ofoutput.

Question

Figure: Demand and Supply  (Figure: Demand and Supply) Refer to the figure. Which of thefollowing statements is TRUE?
I. Buyers are willing to pay $20 for the 16th unit of output andit costs sellers $60 to produce that unit
II.The gains from trade are maximized at 20 units of output
III. At four units of output, there are unexploited gains fromtrade.IV. A free market is likely to produce less than 12 units ofoutput.

Quizplus · Accepted Answer

The Answer of Figure: Demand and Supply  (Figure: Demand and Supply) Refer to the figure. Which of thefollowing statements is TRUE?
I. Buyers are willing to pay $20 for the 16th unit of output andit costs sellers $60 to produce that unit
II.The gains from trade are maximized at 20 units of output
III. At four units of output, there are unexploited gains fromtrade.IV. A free market is likely to produce less than 12 units ofoutput.