-The tables above show the marginal costs and benefits from production of paper. If the market is perfectly competitive and unregulated, the equilibrium output is ________ of paper.
A) 1,600 tons
B) 2,400 tons
C) 3,200 tons
D) 4,000 tons

Question

-The tables above show the marginal costs and benefits from production of paper. If the market is perfectly competitive and unregulated, the equilibrium output is ________ of paper.
A) 1,600 tons 
B) 2,400 tons 
C) 3,200 tons 
D) 4,000 tons

Quizplus · Accepted Answer

In a perfectly competitive and unregulated market, equilibrium output occurs where marginal cost equals marginal benefit. The tables would show that this occurs at 3,200 tons.

-The Tables Above Show the Marginal Costs and Benefits from Production