Suppose there are three buyers (A, B, and C) and three sellers (D, E, and F) in a competitive market with the marginal benefit (MB) schedules shown in Table 1 and the marginal cost (MC) schedules shown in Table 2. Verify that the three efficiency conditions are satisfied for the market when the equilibrium price is $8.

Question

Suppose there are three buyers (A, B, and C) and three sellers (D, E, and F) in a competitive market with the marginal benefit (MB) schedules shown in Table 1 and the marginal cost (MC) schedules shown in Table 2.   Verify that the three efficiency conditions are satisfied for the market when the equilibrium price is $8.

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The Answer of Suppose there are three buyers (A, B, and C) and three sellers (D, E, and F) in a competitive market with the marginal benefit (MB) schedules shown in Table 1 and the marginal cost (MC) schedules shown in Table 2.   Verify that the three efficiency conditions are satisfied for the market when the equilibrium price is $8.

Suppose There Are Three Buyers (A, B, and C) and Three