Author Question: Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a ... (Read 200 times)

strangeaffliction · **on:** Jun 29, 2018

Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. Which of the following is true?

A) If the price of pecans is 3 producers will sell 12,000 pounds of pecans but this output will be economically inefficient.
B) If the price of pecans is 9 consumers will purchase more than the economically efficient output.
C) Both 4,000 pounds and 12,000 pounds are economically inefficient rates of output.
D) If the price of pecans is 3 the output will be economically efficient but there will be a deadweight loss.

Question 2

Since the 1950s,

A) U.S. business cycle fluctuations have becomes more volatile.
B) U.S. business cycle fluctuations have not changed.
C) U.S. business cycle fluctuations have become milder.
D) the United States has not experienced a business cycle.