Use the figure below to answer the following questions. Figure 15.3.1
-Refer to Figure 15.3.1.The figure shows the marginal private benefit curve,the marginal social benefit curve,and the market supply curve.If production is left to the private market,then the price is

Question

Use the figure below to answer the following questions.

Figure 15.3.1
-Refer to Figure 15.3.1.The figure shows the marginal private benefit curve,the marginal social benefit curve,and the market supply curve.If production is left to the private market,then the price is

Quizplus · Accepted Answer

The best choice is C because it represents the intersection of the marginal social benefit curve and the market supply curve, which is where the socially optimal level of production occurs. At this point, the price is P₂.

Use the Figure Below to Answer the Following Questions