- Now, consider two people in the market for tilapia, Reagan and Cheryl. The marginal benefit curves for both individuals are shown in the accompanying graph.
Marginal benefit (S per pound)
52.25
Cheryl s marginal benefit
Reagan's marginal be net it I 2 3 4 5 6 7 8 Quantity (pounds) StevensoNWolters, Principles of Econompcs, 1 e, 2020 Worth Publishers
If the market price is $2.25 per pound of tilapia. How many pounds would Reagan purchase? How many pounds would Cheryl? How many total pounds will they collectively purchase? Is this allocation the most allocatively efficient way to distribute this quantity of tilapia?
Sample Solution