If the demand curve is the same as the marginal benefit curve and the supply curve is the same as the marginal cost curve,then the quantity at which they cross is
i.the equilibrium quantity.
ii.the allocatively efficient quantity.
iii.the quantity with no deadweight loss.
A) i, ii, and iii.
B) only i.
C) only ii.
D) only i and ii.
E) only i and iii.

Question

Quizplus · Accepted Answer

The quantity at which the demand curve (marginal benefit curve) and the supply curve (marginal cost curve) intersect represents the equilibrium quantity, the allocatively efficient quantity, and the quantity with no deadweight loss, as it ensures that resources are allocated in the most efficient way possible, with no underproduction or overproduction.

If the Demand Curve Is the Same as the Marginal