Figure 4-5
-Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. If 8,000 pounds of pecans are sold
A) the deadweight loss is equal to economic surplus.
B) producer surplus equals consumer surplus.
C) the marginal benefit of each of the 8,000 pounds of pecans equals $9.
D) marginal benefit is equal to marginal cost.

Question

Figure 4-5 
-Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. If 8,000 pounds of pecans are sold
A) the deadweight loss is equal to economic surplus. 
B) producer surplus equals consumer surplus. 
C) the marginal benefit of each of the 8,000 pounds of pecans equals $9. 
D) marginal benefit is equal to marginal cost.

Quizplus · Accepted Answer

In a competitive market, equilibrium is achieved when the quantity supplied equals the quantity demanded, meaning marginal benefit equals marginal cost.

Figure 4-5 -Refer to Figure 4-5. the Figure Above Represents the Market