Use the figure below to answer the following questions.

Figure 13.3.1
-Refer to Figure 13.3.1. The efficient quantity is
A)20 units.
B)40 units.
C)60 units.
D)80 units.
E)zero units.

Question

Use the figure below to answer the following questions.
  
Figure 13.3.1
-Refer to Figure 13.3.1. The efficient quantity is
A)20 units. 
B)40 units. 
C)60 units. 
D)80 units. 
E)zero units.

Quizplus · Accepted Answer

The efficient quantity is the point at which marginal cost (MC) equals marginal benefit (MB). In the figure, the MC curve intersects the MB curve at 40 units. Therefore, producing 40 units is the most efficient choice.

Use the Figure Below to Answer the Following Questions