In the context of analyzing economic efficiency, we can interpret the market demand curve to be showing
A) the average cost of producing the product at each output level.
B) the marginal revenue from each extra unit of the product.
C) the marginal benefit that consumers place on each unit of the product.
D) the average variable cost of producing the product.

Question

Quizplus · Accepted Answer

The market demand curve shows the quantity of a product that consumers are willing to purchase at various prices. This can be interpreted as the marginal benefit that consumers place on each unit of the product, as they are willing to pay more for additional units.

In the Context of Analyzing Economic Efficiency, We Can Interpret