Question

9. The pricing system Consider the market for hamburgers in an economy where the market equilibrium is characterized by a quantity of hamburgers of 50 million and a price of $5.00 per hamburger. Suppose that currently 80 million hamburgers are being produced and sold at a price of $2.50. This outcome in the market for hamburgers is economically because: Some hamburgers produced incur opportunity costs of production that exceed their value or marginal benefit to consumers. The opportunity cost of producing the last hamburger equals the marginal benefit of consumption Which of the following must be true for a market to be able to achieve an efficient outcome? Check all that apply. Private property rights are well-defined and enforced. Every economic player works selflessly to promote the social interest. The market price is determined solely by the forces of supply of and demand for a good. Evaluate the following statement True or False: The pricing system ensures that even the lowest-valued demands are satisfied.

Answer 1

Sorry, i just forgot to answer the 2nd part.

(ii) False

For the 2nd part, the answer is False.

The reason is that the profit on one good has nothing to do with the other good.

The entrepreneur could have produced another good with the same marginal cost and earned more profits if its price would be higher than one good.