Refer to the accompanying table,where Q represents the quantity produced,internal cost and social cost are given for various quantities,and P represents the price consumers are willing to pay for various quantities,to answer the following questions.

-The market equilibrium occurs where price is ________ and quantity is ________.

Question

Refer to the accompanying table,where Q represents the quantity produced,internal cost and social cost are given for various quantities,and P represents the price consumers are willing to pay for various quantities,to answer the following questions.
 
-The market equilibrium occurs where price is ________ and quantity is ________.

Quizplus · Accepted Answer

Market equilibrium occurs where quantity demanded equals quantity supplied. At a price of $60, both internal cost and social cost are equal at 300 units. This means that the market will clear at a price of $60 and a quantity of 300. This is the best choice because it represents the socially optimal equilibrium where total surplus (the sum of consumer surplus and producer surplus) is maximized.

Refer to the Accompanying Table,where Q Represents the Quantity Produced,internal