Figure 4.6 Price $9 6 x 4,000 8,000 Supply 12,000 Demand Quantity Refer to Figure 4.6. The figure above represents the market for pecans. Assume that this is a competitive market. At a price of $9, O A. consumers' willingness to pay is greater than producers' willingness to sell, therefore, output produced is inefficiently low. B. the marginal cost of pecans is greater than the marginal benefit; therefore, output is inefficiently low. C. producers should lower the price to $3 in order to sell the quantity demanded of 4,000. D. the marginal benefit of pecans is greater than the marginal cost; therefore, output is inefficiently low. O E. the marginal benefit of pecans is greater than the marginal cost; therefore, output is inefficiently high.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question
Figure 4.6
Price
$9
6
x
4,000
8,000
Supply
12,000
Demand
Quantity
Refer to Figure 4.6. The figure above represents the market for pecans. Assume that this is a competitive market. At
a price of $9,
O A. consumers' willingness to pay is greater than producers' willingness to sell, therefore, output produced is
inefficiently low.
B. the marginal cost of pecans is greater than the marginal benefit; therefore, output is inefficiently low.
C. producers should lower the price to $3 in order to sell the quantity demanded of 4,000.
D. the marginal benefit of pecans is greater than the marginal cost; therefore, output is inefficiently low.
O E. the marginal benefit of pecans is greater than the marginal cost; therefore, output is inefficiently high.
Transcribed Image Text:Figure 4.6 Price $9 6 x 4,000 8,000 Supply 12,000 Demand Quantity Refer to Figure 4.6. The figure above represents the market for pecans. Assume that this is a competitive market. At a price of $9, O A. consumers' willingness to pay is greater than producers' willingness to sell, therefore, output produced is inefficiently low. B. the marginal cost of pecans is greater than the marginal benefit; therefore, output is inefficiently low. C. producers should lower the price to $3 in order to sell the quantity demanded of 4,000. D. the marginal benefit of pecans is greater than the marginal cost; therefore, output is inefficiently low. O E. the marginal benefit of pecans is greater than the marginal cost; therefore, output is inefficiently high.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 1 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education