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 30 million hamburgers are being produced and sold at a price of $7.50. 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. Some hamburgers that are valued more highly by consumers than their opportunity cost of production are not being produced and sold. Which of the following must be true for a market to be able to achieve an efficient outcome? Check all that apply. Private property rights are well-defined and enforced. The market price is determined solely by the forces of supply of and demand for a good. A central planner allocates limited resources according to the needs of the people.

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 30 million hamburgers are being produced and sold at a price of $7.50. 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. Some hamburgers that are valued more highly by consumers than their opportunity cost of production are not being produced and sold. Which of the following must be true for a market to be able to achieve an efficient outcome? Check all that apply. Private property rights are well-defined and enforced. The market price is determined solely by the forces of supply of and demand for a good. A central planner allocates limited resources according to the needs of the people.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains From Trade

Section: Chapter Questions

Problem 3CQQ

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