Table 17-3
The table shows the demand schedule for a particular product.

$$\begin{array} { | c | c | }
\hline \begin{array} { c }
\text { Quantity Demanded } \
\text { (Units) }
\end{array} & \begin{array} { c }
\text { Price } \
\text { (Dollars per unit) }
\end{array} \
\hline 0 & 16 \
\hline 1 & 14 \
\hline 2 & 12 \
\hline 3 & 10 \
\hline 4 & 8 \
\hline 5 & 6 \
\hline 6 & 4 \
\hline 7 & 2 \
\hline 8 & 0 \
\hline
\end{array}$$

-Refer to Table 17-3. If the marginal cost of production in this market is $4, what is the socially efficient quantity of output?
A)3 units
B)4 units
C)5 units
D)6 units

Question

Table 17-3
The table shows the demand schedule for a particular product.
​
​
 $$\begin{array} { | c | c | } 
\hline \begin{array} { c } 
\text { Quantity Demanded } \
\text { (Units) }
\end{array} & \begin{array} { c } 
\text { Price } \
\text { (Dollars per unit) }
\end{array} \
\hline 0 & 16 \
\hline 1 & 14 \
\hline 2 & 12 \
\hline 3 & 10 \
\hline 4 & 8 \
\hline 5 & 6 \
\hline 6 & 4 \
\hline 7 & 2 \
\hline 8 & 0 \
\hline
\end{array}$$ ​
​
-Refer to Table 17-3. If the marginal cost of production in this market is $4, what is the socially efficient quantity of output?
A)3 units
B)4 units
C)5 units
D)6 units

Quizplus · Accepted Answer

The socially efficient quantity of output is where the price (which reflects the marginal benefit to consumers) equals the marginal cost of production. According to the table, at 6 units, the price is $4, which matches the marginal cost of $4. Therefore, 6 units is the socially efficient quantity of output.

Table 17-3 the Table Shows the Demand Schedule for a Particular

Table 17-3
the Table Shows the Demand Schedule for a Particular