The figure below shows the marginal benefit to consumers,MB,the marginal cost to private firms,MCP,and the marginal cost to society,MCS,at each level of output of some good.
FIGURE 17- 1
-Refer to Figure 17- 1.The price that would occur in a competitive market in the absence of government intervention is

Question

The figure below shows the marginal benefit to consumers,MB,the marginal cost to private firms,MCP,and the marginal cost to society,MCS,at each level of output of some good.
  FIGURE 17- 1
-Refer to Figure 17- 1.The price that would occur in a competitive market in the absence of government intervention is

Quizplus · Accepted Answer

The price that would occur in a competitive market in the absence of government intervention is the equilibrium price, which is the price at which the quantity supplied equals the quantity demanded. In Figure 17-1, the equilibrium price is P2.

The Figure Below Shows the Marginal Benefit to Consumers,MB,the Marginal