The figure above shows the market for pizza.
-In the figure above,when the market is in equilibrium,marginal benefit ________ marginal cost,so the quantity of pizza produced is ________.
A) equals; efficient
B) exceeds; efficient
C) is below; efficient
D) is below; not efficient
E) exceeds; not efficient

Question

The figure above shows the market for pizza.
-In the figure above,when the market is in equilibrium,marginal benefit ________ marginal cost,so the quantity of pizza produced is ________.
A) equals; efficient 
B) exceeds; efficient 
C) is below; efficient 
D) is below; not efficient 
E) exceeds; not efficient

Quizplus · Accepted Answer

In equilibrium, marginal benefit (MB) equals marginal cost (MC) which means that the market is producing at an efficient level. All consumers who value pizza more than its cost (MC) are buying it, and all producers who can produce it for less than its cost (MB) are selling it. Therefore, option A is correct.

The Figure Above Shows the Market for Pizza