The figure below shows the marginal benefit to consumers,MB,the marginal cost to private firms,MCP,and the marginal cost to society,MCS,at each level of output of some good.
FIGURE 17-1
-Refer to Figure 17-1.The price that leads consumers to demand the socially optimal quantity of output is
A) zero.
B) P1.
C) P2.
D) P3.
E) not possible to know from the information given.
Correct Answer:
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