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 50 million hamburgers are being produced and sold at a price of $5.00. This outcome in the market for hamburgers is economically because: 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. The opportunity cost of producing the last hamburger equals the marginal benefit of consumption. 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. Every economic player works selflessly to promote the social interest. The market price is determined solely by the forces of supply of and demand for a good.

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 50 million hamburgers are being produced and sold at a price of $5.00. This outcome in the market for hamburgers is economically because: 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. The opportunity cost of producing the last hamburger equals the marginal benefit of consumption. 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. Every economic player works selflessly to promote the social interest. The market price is determined solely by the forces of supply of and demand for a good.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter13: General Equilibrium And Welfare

Section: Chapter Questions

Problem 13.2P

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