-The Figure Above Shows the Market for Brooms

question 109

Multiple Choice

-The figure above shows the market for brooms.If 800 brooms are produced,

• A) consumer surplus is maximized.
• B) producer surplus is maximized.
• C) market failure and a deadweight loss occur.
• D) marginal cost is less than marginal benefit.
• E) there is no deadweight loss.

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Definitions:

Equation

A statement in mathematics that establishes the equivalence of two expressions, typically with variables.

Linear Inequalities

Mathematical statements that involve linear expressions and inequalities, showing that one side is either greater than, less than, greater than or equal to, or less than or equal to the other.

System

A group of guidelines or processes used to accomplish a task; a systematic strategy or technique.

Positive Exponents

Exponents that are positive numbers, indicating how many times the base is multiplied by itself.