Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. At a quantity of 4,000 pounds
A) the marginal benefit of pecans is greater than the marginal cost; therefore, output is inefficiently low.
B) the marginal benefit of pecans is greater than the marginal cost; therefore, output is inefficiently high.
C) the marginal cost of pecans is greater than the marginal benefit; therefore, output is inefficiently low.
D) producers should raise the price to $9 in order to sell the quantity demanded of 4,000.
A
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