Use the figure to answer the following question(s).
Figure 11-8

The demand and cost conditions in an industry are as depicted in Figure 11-8. In the viewpoint of economic efficiency, what would the ideal price and output be?

Question

Use the figure to answer the following question(s).
Figure 11-8

The demand and cost conditions in an industry are as depicted in Figure 11-8. In the viewpoint of economic efficiency, what would the ideal price and output be?

Quizplus · Accepted Answer

To achieve economic efficiency, the price and output should be set where MC (marginal cost) = MB (marginal benefit). This occurs when the supply and demand curves intersect. In this case, the intersection is at a price of $15 and quantity produced of 75. Therefore, choice C is the ideal price and output level for economic efficiency.

Use the Figure to Answer the Following Question(s)