Use the figure below to answer the following questions. Figure 16.3.1
-Figure 16.3.1 shows the marginal private cost curve,marginal social cost curve,and marginal social benefit curve for cod,a common resource.The equilibrium quantity in an unregulated market is
A)0 kilograms a week.
B)4,000 kilograms a week.
C)3,000 kilograms a week.
D)5,000 kilograms a week.
E)1,000 kilograms a week.

Question

Use the figure below to answer the following questions.  Figure 16.3.1
-Figure 16.3.1 shows the marginal private cost curve,marginal social cost curve,and marginal social benefit curve for cod,a common resource.The equilibrium quantity in an unregulated market is
A)0 kilograms a week. 
B)4,000 kilograms a week. 
C)3,000 kilograms a week. 
D)5,000 kilograms a week. 
E)1,000 kilograms a week.

Quizplus · Accepted Answer

In an unregulated market, the equilibrium quantity is determined where the marginal private cost curve intersects the marginal social benefit curve. This point reflects the quantity at which private entities (e.g., fishermen) will operate based on their costs and the market price they receive, without considering the broader social costs.

Use the Figure Below to Answer the Following Questions