The figure above shows the market for milk. If one firm owns all the milk outlets in the city and sells 100 gallons of milk
A) the market is efficient because the marginal social benefit from the last gallon of milk exceeds its marginal social cost.
B) the market is efficient because the total social benefit from milk exceed the total social cost.
C) there is a deadweight loss because the marginal social benefit from the last gallon of milk exceeds its marginal social cost.
D) there is a deadweight loss because the marginal social cost of the last gallon of milk exceeds its marginal social benefit.
C
You might also like to view...
As information technology improves, the lending role of financial institutions such as banks should
A) increase somewhat. B) decrease. C) stay the same. D) increase significantly.
As a source of bank funds, __________ has fallen by nearly two-thirds in relative importance since 1970
A) time deposits B) transactions deposits C) savings deposits D) equity