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Figure 17.10
-(Figure 17.10) The socially optimal output level could be achieved by a government quota of:

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Use the following to answer question:
Figure 17.10 
-(Figure 17.10) The socially optimal output level could be achieved by a government quota of:

Quizplus · Accepted Answer

At the socially optimal level, marginal social cost (MSC) and marginal social benefit (MSB) intersect at Qs which is around 175 units of electricity. This can be achieved through a government-imposed quota. Therefore, the correct answer is B.

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