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In the Following Graph, MPC and MSC Represent the Marginal

Question 27

Multiple Choice

In the following graph, MPC and MSC represent the marginal private cost and marginal social cost of producing a good respectively. QD represents the demand for the good. Refer to the graph to answer the question. In the following graph, MPC and MSC represent the marginal private cost and marginal social cost of producing a good respectively. QD represents the demand for the good. Refer to the graph to answer the question.   The socially optimum level of output is _____ of the good. A)  400 units B)  1000 units C)  1600 units D)  2200 units The socially optimum level of output is _____ of the good.


A) 400 units
B) 1000 units
C) 1600 units
D) 2200 units

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