Refer to Figure 15-6. What is the socially efficient price and quantity?

A) Price = X; quantity = J
B) Price = Y; quantity = K
C) Price = Y; quantity = J
D) Price = Z; quantity = K

Question

Refer to Figure 15-6. What is the socially efficient price and quantity?A) Price = X; quantity = JB) Price = Y; quantity = KC) Price = Y; quantity = JD) Price = Z; quantity = K

Skyler James · Accepted Answer

Final Answer : B, Explanation :  The socially efficient price and quantity occur where the marginal social benefit equals the marginal social cost, which is represented by the intersection of the demand curve (marginal social benefit) and the supply curve (marginal social cost). Choice B correctly identifies this intersection.

Refer to Figure 15-6. What is the socially efficient price and quantity?

A) Price = X; quantity = J
B) Price = Y; quantity = K
C) Price = Y; quantity = J
D) Price = Z; quantity = K

Definitions

Learning Objectives

Learning Objectives

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