Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. If 8,000 pounds of pecans are sold
A) marginal benefit is equal to marginal cost.
B) the deadweight loss is equal to economic surplus.
C) producer surplus equals consumer surplus.
D) the marginal benefit of each of the 8,000 pounds of pecans equals $9.
A
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Which of the following is true about the market equilibrium? a. As the price increases, the quantity demanded and the quantity supplied increases. b. As the price increases, the quantity demanded and the quantity supplied decreases. c. As the price increases, the quantity demanded increases and the quantity supplied decreases
d. As the price increases, the quantity demanded decreases and the quantity supplied increases. e. As the price increases, neither the quantity demanded nor quantity supplied change.
Suppose Canada has a population of 30 million people, and a labor force participation rate of 2/3. Furthermore, suppose the natural rate of unemployment in Canada is 7%. If the current number of unemployed people is 1 million people, what can we conclude about Canada's economy?
A. There is no frictional unemployment present in the economy. B. The unemployment rate is below the natural rate of unemployment. C. There is cyclical unemployment present in the economy. D. The unemployment rate is above the natural rate of unemployment.