Use the Following to Answer Question(s): Markets and Efficiency

Multiple Choice

Use the following to answer question(s) : Markets and Efficiency

-(Exhibit: Markets and Efficiency) Using Panel (a) , which of the following statements is (are) true?

A) Consumers face a price that bears no relation to marginal cost.
B) Consumers face a price of apples that signals their marginal cost.
C) Consumers will buy apples as long as their marginal cost exceeds their marginal benefits.
D) All of the above statements are true.