Figure 5-C
-Refer to Figure 5-C.Market equilibrium and efficient equilibrium are denoted by points ____ respectively.

Question

Figure 5-C 
-Refer to Figure 5-C.Market equilibrium and efficient equilibrium are denoted by points ____ respectively.

Quizplus · Accepted Answer

Point a represents market equilibrium, where the supply and demand curves intersect. Point c represents efficient equilibrium, where the marginal social benefit (MSB) equals the marginal social cost (MSC). Therefore, the correct answer is C, where a and c represent market equilibrium and efficient equilibrium, respectively.

Figure 5-C -Refer to Figure 5-C.Market Equilibrium and Efficient Equilibrium Are Denoted