Use the figure below to answer the following questions.

Figure 16.3.2
-Refer to Figure 16.3.2.The figure shows the market for good B. What is the efficient quantity of good B?
A)0 units
B)3 units
C)5 units
D)6 units
E)9 units

Question

Use the figure below to answer the following questions.
  
Figure 16.3.2
-Refer to Figure 16.3.2.The figure shows the market for good B. What is the efficient quantity of good B?
A)0 units 
B)3 units 
C)5 units 
D)6 units 
E)9 units

Quizplus · Accepted Answer

The efficient quantity is where the supply and demand curves intersect, which is at 5 units. At this quantity, the marginal benefit (the demand curve) is equal to the marginal cost (the supply curve), and there is no deadweight loss. Therefore, choice C is the best choice in terms of efficiency.

Use the Figure Below to Answer the Following Questions