-The Figure Above Shows the Market for Coffee

question 310

Multiple Choice

-The figure above shows the market for coffee. If one firm owns all the coffee outlets and sells 10 million pounds of coffee a month

• A) the market is efficient because the marginal social benefit from coffee exceeds its marginal social cost.
• B) the market is efficient because the total social benefit from coffee exceed the total social cost.
• C) there is a deadweight loss because the marginal social benefit from the last pound of coffee exceeds its marginal social cost.
• D) there is a deadweight loss because the marginal social cost of the last pound of coffee exceeds its marginal social benefit.

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Definitions:

Trillion

A numerical value represented as 1,000,000,000,000 or 10^12, commonly used to quantify large sums, such as government budgets and the global economy.

APC

The Average Propensity to Consume calculates the portion of income that families allocate towards consumption as opposed to savings.

United States

A country located in North America, known for its large economy and diverse population, consisting of 50 states and a federal district.

United States

A country located primarily in North America, consisting of 50 states and a federal district, known for its large economy and diverse population.