Figure 10-3
-Refer to Figure 10-3. What is the socially optimal quantity of output in this market?
A)8 units
B)Between 8 and 10 units
C)10 units
D)More than 10 units

Question

Figure 10-3 
-Refer to Figure 10-3. What is the socially optimal quantity of output in this market?
A)8 units 
B)Between 8 and 10 units 
C)10 units 
D)More than 10 units

Quizplus · Accepted Answer

The socially optimal quantity of output in a market is where the marginal social benefit equals the marginal social cost. This typically occurs at the equilibrium point of supply and demand, which, based on the information provided, would be at 10 units.

Figure 10-3 -Refer to Figure 10-3. What Is the Socially Optimal Quantity