Figure 4-3 
Figure 4-3 shows the market for tiger shrimp. The market is initially in equilibrium at a price of $15 and a quantity of 80. Now suppose producers decide to cut output to 40 in order to raise the price to $18.
-Refer to Figure 4-3.At a price of $18 consumers are willing to buy 40 pounds of tiger shrimp.Is this an economically efficient quantity?
A) No, the marginal benefit of the 40th unit exceeds the marginal cost of that 80th unit.
B) Yes, otherwise consumers would not buy 40 units.
C) Yes, because $18 shows what consumers are willing to pay for the product.
D) No, the marginal cost of the 40th unit exceeds the marginal benefit of the 40th unit.
Correct Answer:
Verified
Q44: Figure 4-1 Q45: Two economists from Northwestern University estimated the Q47: Figure 4-1 Q59: The difference between the _ and the Q59: Suppliers will be willing to supply a Q64: In a competitive market equilibrium, Q77: Figure 4-3 Q78: Economic surplus Q80: Figure 4-3 Q159: If, in a competitive market, marginal benefit Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
A)total consumer surplus
A)does not exist when a competitive
