Refer to the information provided in Figure 27.1 below to answer the question(s) that follow. Figure 27.1Refer to Figure 27.1. Suppose the economy is at Point A an increase in government purchases can cause a movement to Point

A competitive market with no externalities is efficient when it is in equilibrium because

A) total benefit equals total cost. B) marginal benefit equals marginal cost. C) consumer surplus equals producer surplus. D) the sum of consumer surplus plus producer surplus is minimized. E) the deadweight gain equals its maximum.

Adhira buys chocolates and almonds. She has 3 bars of chocolates and 4 bags of almonds. The marginal utility of the third chocolate bar is 18 units of utility and the marginal utility from the fourth bag of almonds is also 18

Is Adhira maximizing her utility? A) No, she must buy 1 more chocolate bar to equate her quantities of the two goods. B) No, she must cut back to 3 bags of almonds to equate her quantities of the two goods. C) No, without information on her income and the prices of the two goods, we cannot answer the question. D) Yes, the marginal utility from the last unit of each good is equal.