Suppose there are three buyers (A,B,and C)and three sellers (D,E,and F)in a competitive market with the marginal benefit (MB)schedules shown in Table 1 and the marginal cost (MC)schedules shown in Table 2. Verify that the three efficiency conditions are satisfied for the market when the equilibrium price is $8.

Question

Suppose there are three buyers (A,B,and C)and three sellers (D,E,and F)in a competitive market with the marginal benefit (MB)schedules shown in Table 1 and the marginal cost (MC)schedules shown in Table 2.    Verify that the three efficiency conditions are satisfied for the market when the equilibrium price is $8.

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The Answer of Suppose there are three buyers (A,B,and C)and three sellers (D,E,and F)in a competitive market with the marginal benefit (MB)schedules shown in Table 1 and the marginal cost (MC)schedules shown in Table 2.    Verify that the three efficiency conditions are satisfied for the market when the equilibrium price is $8.

Suppose There Are Three Buyers (A,B,and C)and Three Sellers (D,E,and