Use the figure below to answer the following questions. Figure 16.3.2
-Figure 16.3.2 shows the marginal private cost curve,marginal social cost curve,and marginal social benefit curve for raising goats on a common pasture.The efficient quantity is
A)0 goats.
B)40 goats.
C)50 goats.
D)55 goats.
E)35 goats.

Question

Use the figure below to answer the following questions.  Figure 16.3.2
-Figure 16.3.2 shows the marginal private cost curve,marginal social cost curve,and marginal social benefit curve for raising goats on a common pasture.The efficient quantity is
A)0 goats. 
B)40 goats. 
C)50 goats. 
D)55 goats. 
E)35 goats.

Quizplus · Accepted Answer

The efficient quantity is where the marginal social benefit curve intersects the marginal social cost curve, which represents the point where the social benefits of an activity equal its social costs. In this scenario, that point is at 40 goats.

Use the Figure Below to Answer the Following Questions