Figure 7-24
-Refer to Figure 7-24.If 10 units of the good are produced and sold,then
A)the marginal cost to sellers exceeds the marginal value to buyers.
B)producer surplus is maximized.
C)total surplus is minimized.
D)the marginal value to buyers exceeds the marginal cost to sellers.

Question

Figure 7-24 
-Refer to Figure 7-24.If 10 units of the good are produced and sold,then
A)the marginal cost to sellers exceeds the marginal value to buyers. 
B)producer surplus is maximized. 
C)total surplus is minimized. 
D)the marginal value to buyers exceeds the marginal cost to sellers.

Quizplus · Accepted Answer

At 10 units, the marginal cost to sellers is higher than the marginal value to buyers, indicating overproduction beyond the efficient quantity where marginal cost equals marginal value.

Figure 7-24 -Refer to Figure 7-24.If 10 Units of the Good Are