FIGURE 5-5
-Refer to Figure 5-5.If production and consumption of gardening services were 5000 hours per month
A)the value placed by consumers on the last 1000 hours is less than the additional costs associated with their provision.
B)the provision of the last 1000 hours would decrease the amount of economic surplus in this market.
C)the resources going into the last 1000 hours of gardening service would be more highly valued elsewhere.
D)this market is not achieving efficiency.
E)all of the above.

Question

FIGURE 5-5
-Refer to Figure 5-5.If production and consumption of gardening services were 5000 hours per month
A)the value placed by consumers on the last 1000 hours is less than the additional costs associated with their provision. 
B)the provision of the last 1000 hours would decrease the amount of economic surplus in this market. 
C)the resources going into the last 1000 hours of gardening service would be more highly valued elsewhere. 
D)this market is not achieving efficiency. 
E)all of the above.

Quizplus · Accepted Answer

If production and consumption are at 5000 hours, it implies that the last 1000 hours are not valued as highly by consumers as the cost to provide them, leading to inefficiency and a decrease in economic surplus.

FIGURE 5-5 -Refer to Figure 5-5.If Production and Consumption of Gardening Services