When 2,000 hamburgers a day are produced,the marginal social benefit from the 2000^th hamburger is $1.50 and its marginal social cost is $1.00.And when 7,500 hamburgers a day are produced,the marginal social benefit from the 2000^th hamburger is $1.00 and its marginal social cost is $1.50.The efficient quantity of hamburgers is ________ a day A)less than 2,000 B)between 2,000 and 7,500 C)more than 7,500 D)zero E)2,000

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Quizplus · Accepted Answer

The efficient quantity of hamburgers is where the marginal social benefit equals the marginal social cost. From the information given, we know that the marginal social benefit decreases (from $1.50 to $1.00) as output increases, while the marginal social cost increases (from $1.00 to $1.50) as output increases. Therefore, the efficient quantity of hamburgers must be between 2,000 and 7,500 (where the two curves intersect).

When 2,000 Hamburgers a Day Are Produced,the Marginal Social Benefit