Cost marginal opportunity cost opportunity of pizza

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Unformatted text preview: l (opportunity cost) (opportunity of pizza 20 15 Consumer’s 10 expenditure = Producer Producer’s Efficient quantity surplus of pizzas revenue 0 5 10 10 15 20 Marginal benefit Marginal (value) of pizza (value) D Quantity (thousands of pizzas per day) Is the Competitive Is Market Efficient? At the competitive equilibrium, marginal benefit to consumers of last unit purchased = marginal cost to producers of supplying that last unit. Resources are being used Resources efficiently. efficiently. At t...
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This document was uploaded on 03/14/2014.

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