Figure 10-6

-Refer to Figure 10-6. If 250 units of plastics are produced and consumed, then the

Question

Figure 10-6
​ 
-Refer to Figure 10-6. If 250 units of plastics are produced and consumed, then the

Quizplus · Accepted Answer

The social optimum is reached when the marginal social cost equals the marginal social benefit. In this case, the marginal social cost is the cost of producing 250 units of plastics, and the marginal social benefit is the benefit of consuming 250 units of plastics. Since the marginal social cost and the marginal social benefit are equal, the social optimum has been reached.

Figure 10-6 ​

Figure 10-6