Figure 15-8
-Refer to Figure 15-8. What is the socially efficient price and quantity?
A)price = A; quantity = X
B)price = B; quantity = Y
C)price = B; quantity = X
D)price = C; quantity = X

Question

Figure 15-8 
-Refer to Figure 15-8. What is the socially efficient price and quantity?
A)price = A; quantity = X 
B)price = B; quantity = Y 
C)price = B; quantity = X 
D)price = C; quantity = X

Quizplus · Accepted Answer

The socially efficient price and quantity are where the marginal social cost curve intersects with the demand curve, which is at point B in the graph. This corresponds to a price of $12 and a quantity of 1,000. At this point, the total surplus (consumer surplus plus producer surplus) is maximized, representing the most efficient allocation of resources. Therefore, the best choice is B.

Figure 15-8 -Refer to Figure 15-8. What Is the Socially Efficient Price