YummyCandiesCo. has developed a new candy bar that contains a full recommended daily allowance of vitamins and minerals. This invention will provide considerable spillover benefits to society. The table below shows the demand for the candy bars, the supply of candy bars if the company receives only the private benefits, and the supply of candy bars if the firm also receives the full social benefits.
If the firm's candy bars were sold on the basis of both private and social benefits, the equilibrium price and quantity would be
A) $4, 100,000
B) $3, 150,000
C) $2, 200,000
D) $1, 250,000
Correct Answer:
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