-In the above figure, 300,000 purses per month is
A) the efficient amount to produce because at 300,000 purses marginal social benefit equals marginal social cost.
B) the efficient amount to produce because at 300,000 purses marginal social benefit is greater than marginal social cost.
C) an inefficient amount to produce because at 300,000 purses marginal social benefit equals marginal social cost.
D) an inefficient amount to produce because producing 500,000 purses sets the marginal social benefit equal to zero.

Question

-In the above figure, 300,000 purses per month is
A) the efficient amount to produce because at 300,000 purses marginal social benefit equals marginal social cost. 
B) the efficient amount to produce because at 300,000 purses marginal social benefit is greater than marginal social cost. 
C) an inefficient amount to produce because at 300,000 purses marginal social benefit equals marginal social cost. 
D) an inefficient amount to produce because producing 500,000 purses sets the marginal social benefit equal to zero.

Quizplus · Accepted Answer

At 300,000 purses, the marginal social benefit equals the marginal social cost, indicating that resources are being used efficiently.

-In the Above Figure, 300,000 Purses Per Month Is