Suppose there are three buyers (A,B,and C)and three sellers (D,E,and F)in a competitive market with the marginal benefit (MB)schedules shown in Table 1 and the marginal cost (MC)schedules shown in Table 2. 
Verify that the three efficiency conditions are satisfied for the market when the equilibrium price is $8.
Definitions:
Risk-free Asset
An investment that is expected to return its full original value along with a specified interest rate with virtually no risk of financial loss.
Beta
An evaluation of the unsteadiness, or systematic jeopardy, of a security or collective financial investments when compared to the market as a whole.
CAPM
The Capital Asset Pricing Model, a formula used to determine the theoretical expected return of an investment given its risk relative to the market.
Risk-free Asset
An investment with zero risk of financial loss, typically considered to be government bonds.
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