Use the following graph of the market for milk to answer the question below.
If 30 million gallons of milk are being produced, then we know
A. too much milk is being produced.
B. too little milk is being produced.
C. marginal benefit is $1.00.
D. marginal benefit is greater than marginal cost.
Answer: A
You might also like to view...
What is a market demand schedule?
a. a table showing how much of a product an individual will buy b. a table showing how much of a product a market will buy c. a graph showing how much of a product an individual will buy d. a graph showing how much of a product a market will buy
The only two firms in a market are trying to decide what price to charge. The payoff matrix for this duopoly game is shown above. The payoffs are thousands of dollars of economic profit. In the above game, in the Nash equilibrium,
A) Firm A and Firm B are both making $40,000 in economic profit. B) Firm A and Firm B are both making $55,000 in economic profit. C) Firm A is making $60,000 and Firm B is making $55,000 in economic profit. D) Firm A and Firm B are both making $60,000 in economic profit. E) Firm A and Firm B are both making $35,000 in economic profit.