-In the above figure, when the quantity equals 400 pretzels
A) consumers are willing to pay $2 for the 400th pretzel.
B) producers are willing to supply 400 pretzels for $3.
C) producers are willing to supply 400 pretzels for $2.
D) the marginal benefit is greater than the marginal cost.

Question

-In the above figure, when the quantity equals 400 pretzels
A) consumers are willing to pay $2 for the 400th pretzel. 
B) producers are willing to supply 400 pretzels for $3. 
C) producers are willing to supply 400 pretzels for $2. 
D) the marginal benefit is greater than the marginal cost.

Quizplus · Accepted Answer

When the quantity is 400 pretzels, consumers are willing to pay $2 for the 400th pretzel, indicating that the demand curve at this quantity shows a price of $2.

-In the Above Figure, When the Quantity Equals 400 Pretzels