Question

the equilibrium price and quantity in a market usually produce allocative efficiency because

equilibrium ensures an equitable distribution of output.
the excess of goods produced at equilibrium guarantees that all will have enough.
marginal benefit and marginal cost are equal at that point.
all consumers who want the good are satisfied.

question 40
2 pts
(consider this) uber€™s dynamic pricing

creates long wait times for consumers wanting rides at peak demand times.
results in ride pricing that is unfair to consumers.
prevents regulated taxi drivers from changing their fares.
keeps the market for rides in equilibrium by constantly adjusting fares to supply and demand conditions.

Explanation:

1. For the first question, allocative efficiency occurs when the marginal benefit to consumers of the last unit produced is equal to the marginal cost of producing it. At market - equilibrium, marginal benefit and marginal cost are equal, which leads to allocative efficiency. The other options are incorrect as equilibrium doesn't ensure equitable distribution, there is no excess of goods at equilibrium in the efficient sense, and not all consumers are satisfied as some may not be able to afford the good.
2. For the second question, Uber's dynamic pricing adjusts fares according to supply and demand conditions. This helps to keep the market for rides in equilibrium. The other options are wrong because dynamic pricing is intended to reduce wait - times, it is not necessarily unfair as it reflects market conditions, and it has no direct relation to preventing taxi drivers from changing fares.

Answer:

1. C. marginal benefit and marginal cost are equal at that point.
2. D. keeps the market for rides in equilibrium by constantly adjusting fares to supply and demand conditions.