In the above figure, when the quantity equals 400 pretzels
A) consumers are willing to pay $2 for the 400th pretzel.
B) producers are willing to supply 400 pretzels for $3.
C) producers are willing to supply 400 pretzels for $2.
D) the marginal benefit is greater than the marginal cost.
A
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When external costs are present and government imposes a tax equal to the external marginal cost, then efficiency can be achieved
Indicate whether the statement is true or false
Marginal resource cost is:
A. The increase in variable costs resulting from producing one more unit of output B. The increase in fixed costs resulting from producing one more unit of output C. The same as the marginal cost of the product D. The same as the resource price when a firm is acquiring the resource in a purely competitive market