Use the figure below to answer the following questions. Figure 15.2.2
-Refer to Figure 15.2.2.This figure shows the demand curve,the marginal private cost curve and the marginal social cost curve of good A.What is the efficient quantity of good A?
A)0 units
B)5 units
C)6 units
D)8 units
E)more than 8 units

Question

Use the figure below to answer the following questions.  Figure 15.2.2
-Refer to Figure 15.2.2.This figure shows the demand curve,the marginal private cost curve and the marginal social cost curve of good A.What is the efficient quantity of good A?
A)0 units 
B)5 units 
C)6 units 
D)8 units 
E)more than 8 units

Quizplus · Accepted Answer

The efficient quantity of good A is where the marginal social cost curve intersects the demand curve, as this point reflects the true cost to society of producing one more unit of the good, including any externalities.

Use the Figure Below to Answer the Following Questions