Figure 10-11 -Refer to Figure 10-11.The socially optimal quantity of output is A) 160 units,since the value to the buyer of the 160^th unit is equal to the cost incurred by the seller of the 160^th unit. B) 160 units,since the value to society of the 160^th unit is equal to the cost incurred by the seller of the 160^th unit. C) 280 units,since the value to the buyer of the 280^th unit is equal to the cost incurred by the seller of the 280th unit. D) 280 units,since the value to society of the 280^th unit is equal to the cost incurred by the seller of the 280^th unit.

Question

Quizplus · Accepted Answer

The socially optimal quantity is where the value to society equals the cost incurred by the seller, which is at 280 units.

Figure 10-11 -Refer to Figure 10-11.The Socially Optimal Quantity of Output Is