Scenario 10-1 The demand curve for gasoline slopes downward and the supply curve for gasoline slopes upward. The production of the 200th gallon of gasoline entails the following: a private cost of $3.03; a social cost of $3.23; a value to consumers of $3.39. Refer to Scenario 10-1. Let QMARKET represent the equilibrium quantity of gasoline, and let QOPTIMUM represent the socially optimal quantity of gasoline. Which of the following inequalities is correct? Group of answer choices QOPTIMUM < QMARKET < 200 QMARKET < 200 < QOPTIMUM 200 < QOPTIMUM < QMARKET QOPTIMUM < 200 < QMARKET
Scenario 10-1 The demand curve for gasoline slopes downward and the supply curve for gasoline slopes upward. The production of the 200th gallon of gasoline entails the following: a private cost of $3.03; a social cost of $3.23; a value to consumers of $3.39. Refer to Scenario 10-1. Let QMARKET represent the equilibrium quantity of gasoline, and let QOPTIMUM represent the socially optimal quantity of gasoline. Which of the following inequalities is correct? Group of answer choices QOPTIMUM < QMARKET < 200 QMARKET < 200 < QOPTIMUM 200 < QOPTIMUM < QMARKET QOPTIMUM < 200 < QMARKET
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Scenario 10-1
The demand curve for gasoline slopes downward and the supply curve for gasoline slopes upward. The production of the 200th gallon of gasoline entails the following:
- a private cost of $3.03;
- a
social cost of $3.23; - a value to consumers of $3.39.
Refer to Scenario 10-1. Let QMARKET represent the equilibrium quantity of gasoline, and let QOPTIMUM represent the socially optimal quantity of gasoline. Which of the following inequalities is correct?
Group of answer choices
QOPTIMUM < QMARKET < 200
QMARKET < 200 < QOPTIMUM
200 < QOPTIMUM < QMARKET
QOPTIMUM < 200 < QMARKET
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