At the quantity of 200 cartons of apples, the marginal social benefit of a carton of apples is $100 and the marginal social cost is $50. To produce the efficient quantity of apples,
A) fewer apples should be produced.
B) there should be no change in the amount of apples produced.
C) more apples should be produced.
D) More information on the willingness of consumers to purchase apples is needed to determine the efficient level of apples.

Question

Quizplus · Accepted Answer

When the marginal social benefit ($100) is higher than the marginal social cost ($50), producing more apples will increase overall welfare until the marginal social benefit equals the marginal social cost.

At the Quantity of 200 Cartons of Apples, the Marginal