-In the above figure, suppose the quantity produced is 40. Then
A) the marginal social cost of the 40th unit is $1.
B) production is not efficient because MSB MSC.
C) the willingness to pay for the 40th unit is $2, the equilibrium price.
D) production is not efficient because MSC MSB.

Question

-In the above figure, suppose the quantity produced is 40. Then
A) the marginal social cost of the 40th unit is $1. 
B) production is not efficient because MSB > MSC. 
C) the willingness to pay for the 40th unit is $2, the equilibrium price. 
D) production is not efficient because MSC > MSB.

Quizplus · Accepted Answer

The Answer of 
-In the above figure, suppose the quantity produced is 40. Then
A) the marginal social cost of the 40th unit is $1. 
B) production is not efficient because MSB > MSC. 
C) the willingness to pay for the 40th unit is $2, the equilibrium price. 
D) production is not efficient because MSC > MSB.

-In the Above Figure, Suppose the Quantity Produced Is 40