What are the equilibrium price and equilibrium quantity of printers? Is this equilibrium efficient?
Explain.
The equilibrium price is $100 and the equilibrium quantity is 80 printers per week. The equilibrium is
efficient if the only people who benefit from printers are the people who buy them, so that the demand
curve is the marginal benefit (MB) curve, and if the only people who bear the cost of printers are the
people who produce them, so that the supply curve is the marginal cost (MC) curve. In this case, when
the market is in equilibrium, MB = MC, which means the equilibrium is efficient.