Graph 7-4 -In Graph 7-4, the efficient price-quantity combination is: A) P₁ - Q₁ B) P₂ - Q₂ C) P₃ - Q₁ D) none of the combinations are efficient

Question

Quizplus · Accepted Answer

The efficient price-quantity combination is where the marginal cost of production equals the marginal benefit to consumers, which is where the supply curve (P₂) intersects with the demand curve (QD1U1B12D1U1B0). This is the point where the market is in equilibrium, and both buyers and sellers benefit the most.

Graph 7-4 -In Graph 7-4, the Efficient Price-Quantity Combination Is