Figure 7-3
Bettye Babylon does not charge admission to her arboreal estate, the Hanging Gardens. Due to space limitations, Bettye only allows 200 visitors per day at her estate. The figure represents the supply and demand for admission to the Hanging Gardens.
-Refer to Figure 7-3.The economically efficient price to charge for admission to the Hanging Gardens is
A) $0.
B) $10.
C) between $10 and $25.
D) $25.

Question

Figure 7-3
  Bettye Babylon does not charge admission to her arboreal estate, the Hanging Gardens. Due to space limitations, Bettye only allows 200 visitors per day at her estate. The figure represents the supply and demand for admission to the Hanging Gardens.
-Refer to Figure 7-3.The economically efficient price to charge for admission to the Hanging Gardens is
A) $0. 
B) $10. 
C) between $10 and $25. 
D) $25.

Quizplus · Accepted Answer

The economically efficient price is where the demand curve intersects the marginal cost curve, which is at $10.

Figure 7-3 Bettye Babylon Does Not Charge Admission to Her