Refer to the accompanying table,where Q represents the quantity produced,internal cost and social cost are given for various quantities,and P represents the price consumers are willing to pay for various quantities.

The market equilibrium occurs where price is ________ and quantity is ________.

Question

Refer to the accompanying table,where Q represents the quantity produced,internal cost and social cost are given for various quantities,and P represents the price consumers are willing to pay for various quantities.

The market equilibrium occurs where price is ________ and quantity is ________.

Quizplus · Accepted Answer

The market equilibrium occurs where quantity demanded equals quantity supplied, and where the marginal benefit to consumers (price) equals the marginal cost to producers (internal cost). In this case, the intersection of the demand curve (P) and marginal cost (internal cost) curve occurs at a quantity of 300 and a price of $60. Therefore, the answer is (C) $60; 300.

Refer to the Accompanying Table,where Q Represents the Quantity Produced,internal