When a perfectly competitive market has reached its equilibrium, (Need help? Read chapter 4.3 of the textbook, here: https://playconomics. the price of the good is equal to the wages of the workers used to produce it. the price of the good is equal to the lowest point on the short-run average variable cost the total economic surplus is maximised. None of these.
When a perfectly competitive market has reached its equilibrium, (Need help? Read chapter 4.3 of the textbook, here: https://playconomics. the price of the good is equal to the wages of the workers used to produce it. the price of the good is equal to the lowest point on the short-run average variable cost the total economic surplus is maximised. None of these.
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter22: Price Takers And The Competitive Process
Section: Chapter Questions
Problem 6CQ: Suppose that the development of a new drought-resistant hybrid seed corn leads to a 50 percent...
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Transcribed Image Text:When a perfectly competitive market has reached its equilibrium,
(Need help? Read chapter 4.3 of the textbook, here: https://playconomics.com/textbooks/view/playconomics4-2019t3/part2/ch4/s3)
the price of the good is equal to the wages of the workers used to produce it.
the price of the good is equal to the lowest point on the short-run average variable cost curve.
the total economic surplus is maximised.
None of these.
both consumers' benefits and producers' revenues are maximised.
Transcribed Image Text:. The seller's marginal cost for
Suppose the demand curve is given by Qd = 5 - P and the supply curve is given by Qs = 1 + P. Assume that the quantity produced and consumed is 2 units. The buyer's marginal benefit from purchasing the 2nd unit is
producing the 2nd unit is
(Need help? Read chapter 4.2 of the textbook, here: https://playconomics.com/textbooks/view/playconomics4-2019t3/part2/ch4/s2)
9; 5
2; 8
9; 2
3; 1
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