Figure 5-4
-Refer to Figure 5-4.The figure above represents the market for pecans.Assume that this is a competitive market.If 8000 kilograms of pecans are sold,

Question

Figure 5-4 
-Refer to Figure 5-4.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 efficient outcome is where marginal benefit equals marginal cost. Therefore, if 8000 kilograms of pecans are sold, the marginal benefit of each of those kilograms must equal the marginal cost of producing them. Option D is the only choice that correctly reflects this. Options A and B are incorrect as they do not reflect the fact that some economic surplus is lost due to inefficiency. Option C is incorrect as there is no information given about the marginal benefit of each kilogram of pecans.

Figure 5-4 -Refer to Figure 5-4.The Figure Above Represents the Market for the Market