Figure 10-8
-Refer to Figure 10-8. What is the socially-optimal quantity of output in this market?
A)8 units
B)Between 8 and 10 units
C)10 units
D)More than 10 units

Question

Figure 10-8 
-Refer to Figure 10-8. What is the socially-optimal quantity of output in this market?
A)8 units 
B)Between 8 and 10 units 
C)10 units 
D)More than 10 units

Quizplus · Accepted Answer

The socially-optimal quantity of output in this market occurs where the marginal social benefit (MSB) equals the marginal social cost (MSC), which is at a quantity of 10 units. At this quantity, the total benefit to society is maximized and the total cost to society is minimized, resulting in the most efficient allocation of resources.

Figure 10-8 -Refer to Figure 10-8. What Is the Socially-Optimal Quantity of Socially-Optimal