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14. The pricing system Consider the market for hamburgers in an economy where the market equilibrium is characterized by a quantity of hamburgers of 50 million and a price of $5.00 per hamburger. Suppose that currently 80 million hamburgers are being produced and sold at a price of $2.50. This outcome in the market for hamburgers is economically because: The opportunity cost of producing the last hamburger equals the marginal benefit of consumption. Some hamburgers produced incur opportunity costs of production that exceed their value or marginal benefit to consumers. Which of the following must be true for a market to be able to achieve an efficient outcome? Check all that apply. Firms can freely enter or exit the market without any barriers. A ceral planner allocates limited resources according to the needs of the people. Private property rights are well-defined and enforced. Evaluate the following statement. True or False: The pricing system ensures that even the lowest-valued demands are satisfied. True False

14. The pricing system Consider the market for hamburgers in an economy where the market equilibrium is characterized by a quantity of hamburgers of 50 million and a price of $5.00 per hamburger. Suppose that currently 80 million hamburgers are being produced and sold at a price of $2.50. This outcome in the market for hamburgers is economically because: The opportunity cost of producing the last hamburger equals the marginal benefit of consumption. Some hamburgers produced incur opportunity costs of production that exceed their value or marginal benefit to consumers. Which of the following must be true for a market to be able to achieve an efficient outcome? Check all that apply. Firms can freely enter or exit the market without any barriers. A ceral planner allocates limited resources according to the needs of the people. Private property rights are well-defined and enforced. Evaluate the following statement. True or False: The pricing system ensures that even the lowest-valued demands are satisfied. True False

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter4: The Market Forces Of Supply And Demand
Section: Chapter Questions
Problem 6QR
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14. The pricing system Consider the market for hamburgers in an economy where the market equilibrium is characterized by a quantity of hamburgers of 50 million and a price of $5.00 per hamburger. Suppose that currently 80 million hamburgers are being produced and sold at a price of $2.50. This outcome in the market for hamburgers is economically because: The opportunity cost of producing the last hamburger equals the marginal benefit of consumption. Some hamburgers produced incur opportunity costs of production that exceed their value or marginal benefit to consumers. Which of the following must be true for a market to be able to achieve an efficient outcome? Check all that apply. Firms can freely enter or exit the market without any barriers. A ceral planner allocates limited resources according to the needs of the people. Private property rights are well-defined and enforced. Evaluate the following statement. True or False: The pricing system ensures that even the lowest-valued demands are satisfied. True False
Transcribed Image Text:14. The pricing system Consider the market for hamburgers in an economy where the market equilibrium is characterized by a quantity of hamburgers of 50 million and a price of $5.00 per hamburger. Suppose that currently 80 million hamburgers are being produced and sold at a price of $2.50. This outcome in the market for hamburgers is economically because: The opportunity cost of producing the last hamburger equals the marginal benefit of consumption. Some hamburgers produced incur opportunity costs of production that exceed their value or marginal benefit to consumers. Which of the following must be true for a market to be able to achieve an efficient outcome? Check all that apply. Firms can freely enter or exit the market without any barriers. A ceral planner allocates limited resources according to the needs of the people. Private property rights are well-defined and enforced. Evaluate the following statement. True or False: The pricing system ensures that even the lowest-valued demands are satisfied. True False
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