Figure 4-4
-Refer to Figure 4-4.The figure above represents the market for iced tea.Assume that this is a competitive market.If 20,000 units of iced tea are sold

Question

Figure 4-4 
-Refer to Figure 4-4.The figure above represents the market for iced tea.Assume that this is a competitive market.If 20,000 units of iced tea are sold

Quizplus · Accepted Answer

In a competitive market, the quantity of output is determined where marginal benefit equals marginal cost. Therefore, if 20,000 units of iced tea are sold, it implies that marginal benefit equals marginal cost. The deadweight loss is not equal to economic surplus, and producer surplus does not equal consumer surplus.

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