Figure: Market Failure (Figure: Market Failure) in the Figure

question 43

Multiple Choice

Figure: Market Failure (Figure: Market Failure) In the figure Market Failure, if production in this competitive market is at quantity G, then:

• A)marginal benefit is less than marginal cost.
• B)marginal benefit is equal to marginal cost.
• C)marginal benefit is greater than marginal cost.
• D)price is equal to marginal cost and less than marginal benefit.