The graph below represents the market for walnuts. Identify the values of the marginal benefit and the marginal cost at the output levels of 2,000 pounds, 4,000 pounds, and 6,000 pounds
At each of these output levels, state whether output is inefficiently high, inefficiently low, or economically efficient.
Output level = 2,000 lbs: marginal benefit = $3.50, marginal cost = $2.50, output is inefficiently low.
Output level = 4,000 lbs: marginal benefit = $3.00, marginal cost = $3.00, output is economically efficient.
Output level = 6,000 lbs: Marginal benefit = $2.50, marginal cost = $3.50, output is inefficiently high.
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What will be an ideal response?
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a. True b. False Indicate whether the statement is true or false