-The figure above shows the market for brooms.If 400 brooms are produced,
A) consumer surplus is maximized.
B) producer surplus is maximized.
C) market failure and a deadweight loss occur.
D) marginal cost is greater than marginal benefit.
E) consumer surplus equals zero.

Question

-The figure above shows the market for brooms.If 400 brooms are produced,
A) consumer surplus is maximized. 
B) producer surplus is maximized. 
C) market failure and a deadweight loss occur. 
D) marginal cost is greater than marginal benefit. 
E) consumer surplus equals zero.

Quizplus · Accepted Answer

When 400 brooms are produced, it indicates that the market is not at equilibrium, leading to market failure and a deadweight loss.

-The Figure Above Shows the Market for Brooms