Figure 18.6.1
-Refer to Figure 18.6.1 above. The marginal social benefit of consumption of this nonrival good equals the marginal cost when the benefits are:

Question

Quizplus · Accepted Answer

The marginal social benefit intersects with the marginal cost curve at an output level of 8 units. At this output level, the marginal cost is $5.50 and the marginal social benefit is also $5.50. Therefore, the best choice would be to produce and consume 8 units of the nonrival good.

Figure 18.6.1 -Refer to Figure 18.6.1 Above. the Marginal Social Benefit of Benefit