ECON 202 6.7

In a competitive market equilibrium A. The marginal benefit equals the marginal cost of the last unit sold. B. Marginal benefit and marginal cost are maximized. C. Total consumer surplus equals total producer surplus. D. Consumers and producers benefit equally.

A. The marginal benefit equals the marginal cost of the last unit sold.

In a competitive market the demand curve shows the ________ received by consumers and the supply curve shows the ________. A. Net benefit; net cost B. Marginal benefit; marginal cost C. Economic surplus; opportunity cost D. Utility; average cost.

B. Marginal benefit; marginal cost

https://tamu.blackboard.com/courses/1/ECON.202.599.1811/ppg/quiz%204.110913161810/f1q13g1.jpg The figure above represents the market for pecans. Assume that this is a competitive market. At a price of $9 A. producers should lower the price to $3 in order to sell the quantity demanded of 4,000. B. The marginal cost of pecans is greater than the marginal benefit; therefore, output is inefficiently high. C. The marginal benefit of pecans is greater than the marginal cost; therefore, output is inefficiently low. D. The marginal cost of pecans is greater than the marginal benefit; therefore, output is inefficiently low.

B. The marginal cost of pecans is greater than the marginal benefit; therefore, output is inefficiently high.

________ is maximized in a competitive market when marginal benefit equals marginal cost. A. Deadweight loss B. Marginal profit C. Economic surplus D. Selling price

C. Economic surplus

https://tamu.blackboard.com/courses/1/ECON.202.599.1811/ppg/quiz%204.110913161810/f1q15g1.jpg 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 marginal benefit of each of the 8,000 pounds of pecans equals $9. B. The deadweight loss is equal to economic surplus. C. Marginal benefit is equal to marginal cost. D. Producer surplus equals consumer surplus.

C. Marginal benefit is equal to marginal cost.