Figure 11-6

-The demand and cost conditions in an industry are as depicted in Figure 11-6.In the viewpoint of economic efficiency,what would the ideal price and output be?

Question

Figure 11-6
 
-The demand and cost conditions in an industry are as depicted in Figure 11-6.In the viewpoint of economic efficiency,what would the ideal price and output be?

Quizplus · Accepted Answer

The ideal price and output for economic efficiency occur where the price equals marginal cost (P=MC), which typically corresponds to the point where the demand curve intersects the marginal cost curve. This ensures that resources are allocated efficiently, maximizing total surplus.

Figure 11-6 -The Demand and Cost Conditions in an Industry Are as an Industry