Use the following to answer question(s): Efficiency and Pollution

-(Exhibit: Efficiency and Pollution) If this market produced _______ units, then _______.
A) 30; it would be efficient
B) 30; MB MC
C) 45; total cost would equal total benefits
D) 45; MC = 0

Question

Use the following to answer question(s): Efficiency and Pollution
 
-(Exhibit: Efficiency and Pollution) If this market produced _______ units, then _______.
A) 30; it would be efficient 
B) 30; MB > MC 
C) 45; total cost would equal total benefits 
D) 45; MC = 0

Quizplus · Accepted Answer

Producing 30 units would be efficient because it is likely the point where marginal benefit equals marginal cost, maximizing net benefits.

Use the Following to Answer Question(s): Efficiency and Pollution