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Consider the market for 2017 Ford F250s in Los Angeles. Suppose that at this very instant a person has purchased the 100,000th new F250 sold in Los Angeles so far. The buyer of that 100,000th truck attaches a marginal benefit of $33,000 to that truck. The marginal cost of producing and selling that 100,000th truck was equal to $25,000. Is 100,000 equal to the competitive market equilibrium quantity for new F250s sold in Los Angeles? Explain why or why not in one or two sentences.
(NOTE: I am not asking if the market for 2017 F250s is competitive in Los Angeles; or if it is likely to be a competitive market. In fact, we know that there are a small number of auto manufacturers, so it isn't a competitive market in any city (the market for used cars tends to be much more competitive, however). The question is asking you to use the information you have about MB and MC associated with the 100,000th truck purchase to determine if this is the efficient quantity that would be sold if the market was competitive.
The answer to this question does not depend on the price paid by the buyer for the 100,000th truck.)
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