Suppose there are three buyers (A, B, and C) and three sellers (D, E, and F) in a competitive market with the marginal benefit (MB) schedules shown in Table 1 and the marginal cost (MC) schedules shown in Table 2. Verify that the three efficiency conditions are satisfied for the market when the equilibrium price is $8.

Question

Suppose there are three buyers (A, B, and C) and three sellers (D, E, and F) in a competitive market with the marginal benefit (MB) schedules shown in Table 1 and the marginal cost (MC) schedules shown in Table 2.

Verify that the three efficiency conditions are satisfied for the market when the equilibrium price is $8.

Quizplus · Accepted Answer

The Answer of Suppose there are three buyers (A, B, and C) and three sellers (D, E, and F) in a competitive market with the marginal benefit (MB) schedules shown in Table 1 and the marginal cost (MC) schedules shown in Table 2.   Verify that the three efficiency conditions are satisfied for the market when the equilibrium price is $8.

Suppose There Are Three Buyers (A, B, and C) and Three