Question :
Figure 4-5
21) Refer to Figure 4-5. The figure above : 1387443
Figure 4-5
21) Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. If the price of pecans is $3, what changes in the market would result in an economically efficient output?
A) The price would increase, the quantity supplied would decrease, and the quantity demanded would increase.
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 decrease, and the supply would increase.
D) The price would increase, the quantity demanded would decrease, and the quantity supplied would increase.
22) Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. If the price of pecans is $9, what changes in the market would result in an economically efficient output?
A) The price would decrease, the quantity supplied would decrease, and the quantity demanded would increase.
B) The quantity supplied would increase, the quantity demanded would decrease, and the equilibrium price would decrease.
C) The price would decrease, the demand would increase, and the supply would decrease.
D) The price would increase, the quantity demanded would decrease, and the quantity supplied would increase.
23) 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) the deadweight loss is equal to economic surplus.
B) producer surplus equals consumer surplus.
C) the marginal benefit of each of the 8,000 pounds of pecans equals $9.
D) marginal benefit is equal to marginal cost.
24) Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. If 4,000 pounds of pecans are sold,
A) the deadweight loss is equal to $12,000.
B) consumer surplus equals zero.
C) the marginal benefit of each of the 4,000 pounds of pecans equals $3.
D) marginal benefit is equal to marginal cost.
25) Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. Which of the following is true?
A) If the price of pecans is $3, the output will be economically efficient, but there will be a deadweight loss.
B) If the price of pecans is $9, consumers will purchase more than the economically efficient output.
C) Both 4,000 pounds and 12,000 pounds are economically inefficient rates of output.
D) If the price of pecans is $3, producers will sell 12,000 pounds of pecans, but this output will be economically inefficient.
26) If equilibrium is achieved in a competitive market,
A) there is no deadweight loss.
B) the deadweight loss will be maximized.
C) the deadweight loss will equal the sum of consumer surplus and producer surplus.
D) the deadweight loss will be the same as the opportunity cost of the last unit of output sold.
27) If there is a market outcome in which the marginal benefit to consumers of the last unit produced is equal to its marginal cost of production, and consumer surplus plus producer surplus is maximized, then
A) maximum deadweight loss occurs.
B) economic efficiency is achieved.
C) profits are maximized.
D) costs are minimized.
28) In a competitive market equilibrium the ________ equals the ________ of the last unit sold.
A) total profit; marginal benefit
B) total cost; marginal cost
C) profit; selling price
D) marginal benefit; marginal cost
29) When the marginal benefit equals the marginal cost of the last unit sold in a competitive market,
A) the net benefit of consumers is equal to the net benefit of producers.
B) an economically efficient level of output is produced.
C) producer surplus is equal to consumer surplus.
D) total benefit is equal to total cost.
