Use the figure below to answer the following questions. Figure 15.3.2
-Refer to Figure 15.3.2.The figure shows the market for good B.What is the efficient quantity of good B?
A)0 units
B)3 units
C)5 units
D)6 units
E)9 units

Question

Use the figure below to answer the following questions.  Figure 15.3.2
-Refer to Figure 15.3.2.The figure shows the market for good B.What is the efficient quantity of good B?
A)0 units 
B)3 units 
C)5 units 
D)6 units 
E)9 units

Quizplus · Accepted Answer

The efficient quantity is where the supply curve intersects with the demand curve. In this case, it is at 5 units of good B. At this quantity, the marginal benefit to consumers (represented by the demand curve) equals the marginal cost to producers (represented by the supply curve). Therefore, C is the best choice for the efficient quantity of good B.

Use the Figure Below to Answer the Following Questions