Use the following to answer question:
-(Table: Lunch)Use Table: figure Lunch.This table shows market demand for picnic lunches for people taking all-day rafting trips on the river.Suppose that the marginal cost and average cost of each lunch are a constant $4 for all firms in the market.What is deadweight loss in this market in the long run?
A)$0
B)$4
C)$180
D)$360

Question

Use the following to answer question: 
-(Table: Lunch)Use Table: figure Lunch.This table shows market demand for picnic lunches for people taking all-day rafting trips on the river.Suppose that the marginal cost and average cost of each lunch are a constant $4 for all firms in the market.What is deadweight loss in this market in the long run?
A)$0 
B)$4 
C)$180 
D)$360

Quizplus · Accepted Answer

In the long run, in a competitive market, firms will produce where price equals marginal cost, leading to an efficient allocation of resources with no deadweight loss, assuming no externalities or market failures.

Use the Following to Answer Question