Figure 11-1
-Refer to Figure 11-1.The figure above represents the market for pecans.Assume that this is a competitive market.If 8000 kilograms of pecans are sold,

Question

Figure 11-1 
-Refer to Figure 11-1.The figure above represents the market for pecans.Assume that this is a competitive market.If 8000 kilograms of pecans are sold,

Quizplus · Accepted Answer

In a competitive market, the equilibrium point is where marginal benefit equals marginal cost. Therefore, if 8000 kilograms of pecans are sold, it must be the equilibrium quantity, and the marginal benefit of each of the 8000 kilograms of pecans equals the market price of pecans. Thus, D is the correct answer. A is incorrect because deadweight loss is the loss of economic surplus due to a market inefficiency or market distortion, which is not necessarily equal to economic surplus. B is incorrect because producer surplus and consumer surplus can be different. C is incorrect because the marginal benefit of each of the 8000 kilograms of pecans equals the price of pecans, which is not necessarily $9.

Figure 11-1 -Refer to Figure 11-1.The Figure Above Represents the Market for the Market