Refer to Figure 4-6. At the equilibrium price of P1, consumers are willing to buy Q1 pounds of granola. Is this an economically efficient quantity?
A) No, the marginal cost of the last unit (Q1 ) exceeds the marginal benefit of the last unit.
B) No, the marginal benefit of the last unit (Q1 ) exceeds the marginal cost of that last unit.
C) Yes, because P1 is the price where marginal benefit equals marginal cost.
D) Yes, because marginal cost is zero at the price of P1.
C
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What will be an ideal response?
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Indicate whether the statement is true or false
"More people purchase chap stick when the weather man announces that we are in for a very windy week." This statement implies that:
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