Question : 41) ________ defined as a market outcome in which the : 1245077

41) ________ is defined as a market outcome in which the marginal benefit to consumers of the last unit produced is equal to the marginal cost of production, and in which the sum of consumer surplus and producer surplus is at a maximum.

A) Economic efficiency

B) Consumer efficiency

C) Producer efficiency

D) Deadweight efficiency

42) If, in a competitive market, marginal benefit is greater than marginal cost

A) the net benefit to consumers from participating in the market is greater than the net benefit to producers.

B) the government must force producers to lower price in order to achieve economic efficiency.

C) the quantity sold is greater than the equilibrium quantity.

D) the quantity sold is less than the equilibrium quantity.

43) In a competitive market the ________ curve shows the marginal benefit received by consumers and the ________ curve shows the marginal cost to producers.

A) .demand; supply

B) supply; demand

C) demand; market demand

D) supply; market supply

Figure 4-7

44) Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. At a price of $3

A) the marginal cost of iced tea is greater than the marginal benefit; therefore, output is inefficiently low.

B) producers should lower the price to $1 in order to sell the quantity demanded of 10,000.

C) the marginal benefit of iced tea is greater than the marginal cost; therefore, output is inefficiently low.

D) the marginal benefit of iced tea is greater than the marginal cost; therefore, output is inefficiently high.

45) Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. At a price of $1

A) the marginal cost of iced tea is greater than the marginal benefit; therefore, output is inefficiently low.

B) producers should raise the price to $3 in order to sell the quantity demanded of 30,000.

C) the marginal benefit of iced tea is greater than the marginal cost; therefore, output is inefficiently low.

D) the marginal benefit of iced tea is greater than the marginal cost; therefore, output is inefficiently high.

46) Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. If the price of iced tea is $1

A) the quantity supplied is less than the economically efficient quantity.

B) the quantity supplied is economically efficient but the quantity demanded is economically inefficient.

C) economic surplus is maximized.

D) not enough consumers want to buy iced tea.

47) Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. If the price of iced tea is $3

A) the quantity supplied is greater than the economically efficient quantity.

B) the quantity demanded is economically efficient but the quantity supplied is economically inefficient.

C) economic surplus is maximized.

D) too many consumers want to buy iced tea.

48) Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. If the price of iced tea is $3, what changes in the market would result in an economically efficient output?

A) The price would decrease, the quantity supplied would increase, and the quantity demanded would decrease.

B) The quantity supplied would decrease, the quantity demanded would increase and the equilibrium price would decrease.

C) The price would decrease, the demand would increase and the supply would decrease.

D) The price would decrease, quantity demanded would increase and quantity supplied would decrease.

49) Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. If the price of iced tea is $1, what changes in the market would result in an economically efficient output?

A) The price would increase, the quantity supplied would increase, and the quantity demanded would decrease.

B) The quantity supplied would increase, the quantity demanded would decrease and the equilibrium price would increase.

C) The price would increase, the demand would increase and the supply would decrease.

D) The price would increase, quantity demanded would increase and quantity supplied would decrease.

50) Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. If 20,000 units of iced tea are sold

A) the deadweight loss is equal to economic surplus.

B) producer surplus equals consumer surplus.

C) the marginal benefit of each of the 20,000 units of iced tea equals $3.

D) marginal benefit is equal to marginal cost.