Refer to the figure below. Private markets will provide ________ units of this good per day, and the socially optimal number of units per day is ________.

A)H; F
B)H; G
C)F; G
D)G; F

Question

Refer to the figure below. Private markets will provide ________ units of this good per day, and the socially optimal number of units per day is ________.

A)H; F 
B)H; G 
C)F; G 
D)G; F

Quizplus · Accepted Answer

The intersection of the private MC curve and the demand curve occurs at output level G, while the intersection of the social MC curve and the demand curve occurs at output level F.

Refer to the Figure Below