Figure 10-10
-Refer to Figure 10-10. An increase in output from 120 units to 160 units would
A)move the market from a socially efficient outcome to a socially inefficient outcome.
B)increase the external cost per unit of output.
C)increase total economic well-being.
D)be an action of which a benevolent social planner would approve.

Question

Figure 10-10 
-Refer to Figure 10-10. An increase in output from 120 units to 160 units would
A)move the market from a socially efficient outcome to a socially inefficient outcome. 
B)increase the external cost per unit of output. 
C)increase total economic well-being. 
D)be an action of which a benevolent social planner would approve.

Quizplus · Accepted Answer

An increase in output from 120 units to 160 units would move the market from a socially efficient outcome to a socially inefficient outcome because it would increase the external cost per unit of output.

Figure 10-10 -Refer to Figure 10-10. an Increase in Output from 120