-The figure above shows the market for brooms.If 800 brooms are produced,
A) marginal cost exceeds marginal benefit.
B) a deadweight loss does not occur because everyone who wants to buy a broom can.
C) the "big tradeoff" occurs.
D) value exceeds price.
E) the "fair results" approach to fairness is definitely not violated.

Question

-The figure above shows the market for brooms.If 800 brooms are produced,
A) marginal cost exceeds marginal benefit. 
B) a deadweight loss does not occur because everyone who wants to buy a broom can. 
C) the "big tradeoff" occurs. 
D) value exceeds price. 
E) the "fair results" approach to fairness is definitely not violated.

Quizplus · Accepted Answer

When 800 brooms are produced, the marginal cost of producing an additional broom exceeds the marginal benefit to consumers, indicating overproduction and inefficiency, leading to a deadweight loss.

-The Figure Above Shows the Market for Brooms