-The above figure shows the market for steel ingots.The socially optimal quantity of steel is

Question

Quizplus · Accepted Answer

The socially optimal quantity of steel is where the marginal social benefit equals the marginal social cost, which is typically at the equilibrium point in a competitive market. Without seeing the figure, the general principle is that the socially optimal quantity is not zero (as there is demand for steel) and is determined by market forces in a competitive environment. Since "produced if the market were competitive" is not a quantity and without specific data, the best guess based on typical market analysis principles is that there is a specific optimal quantity, which in this case is suggested to be 50 units.

-The Above Figure Shows the Market for Steel Ingots