Figure 4-4 
-Refer to Figure 4-4.The figure above represents the market for iced tea.Assume that this is a competitive market.At a price of $3
A) the marginal cost of iced tea is greater than the marginal benefit; therefore,output is inefficiently low.
B) producers should lower the price to $1 in order to sell the quantity demanded of 10,000.
C) the marginal benefit of iced tea is greater than the marginal cost; therefore,output is inefficiently low.
D) the marginal benefit of iced tea is greater than the marginal cost; therefore,output is inefficiently high.
Correct Answer:
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Q82: If marginal benefit is less than marginal
Q89: Figure 4-4 Q90: If the market price is at equilibrium,the Q91: The difference between consumer surplus and producer Q93: Figure 4-4 Q94: _ is defined as a market outcome Q95: Figure 4-4 Q96: There will be no deadweight loss if Q99: In a competitive market when there is Q100: Figure 4-4 Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
