Figure 10-20.
-Refer to Figure 10-20. The graph depicts the market for fertilizer. What is the socially optimal quantity of fertilizer?
A)100 units
B)200 units
C)250 units
D)300 units

Question

​Figure 10-20. ​ 
-Refer to Figure 10-20. The graph depicts the market for fertilizer. What is the socially optimal quantity of fertilizer?
A)​100 units 
B)200 units 
C)250 units 
D)​300 units

Quizplus · Accepted Answer

The socially optimal quantity is where the marginal social cost equals the marginal social benefit, which is typically depicted at the intersection of the demand and supply curves accounting for externalities.

​Figure 10-20. ​

Figure 10-20.