Figure 4-4

-Refer to Figure 4-4.The figure above represents the market for pecans.Assume that this is a competitive market.If 8,000 pounds of pecans are sold,

Question

Figure 4-4
 
-Refer to Figure 4-4.The figure above represents the market for pecans.Assume that this is a competitive market.If 8,000 pounds of pecans are sold,

Quizplus · Accepted Answer

In a competitive market, equilibrium is reached when marginal benefit equals marginal cost. Therefore, if 8,000 pounds of pecans are sold, it implies that marginal benefit is equal to marginal cost. Option D is the correct choice. Options A and B are incorrect because deadweight loss and economic surplus depend on the quantity exchanged, which is not given in the question. Option C is also incorrect because marginal benefit is not provided in dollars, so it is not possible to say that the marginal benefit of each of the 8,000 pounds of pecans equals $9.

Figure 4-4 -Refer to Figure 4-4.The Figure Above Represents the Market for Represents