econ 202 quiz 6.10

the "invisible hand" refers to the notion that

competitive markets send resources to their highest valued uses

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

economic efficiency is achieved

Refer to Figure 4-4. The figure above represents the market for pecans. Assume that this is a competitive market. If 8,000 pounds of pecans are sold

marginal benefit is equal to marginal cost

when efficiency is attained, the sum of the total amount of consumer surplus and producer surplus is

maximized

economic efficiency 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