(Figure: External Marginal Cost III) Which of the following statements is (are) TRUE? I. The socially optimal quantity is 3.
II) The deadweight loss associated with the perfectly competitive output level is $4.50.
III) The external marginal cost is $6.
A) I, II, and III
B) I
C) I and II
D) II and III

Question

(Figure: External Marginal Cost III) Which of the following statements is (are) TRUE?  I. The socially optimal quantity is 3.
II) The deadweight loss associated with the perfectly competitive output level is $4.50.
III) The external marginal cost is $6.
A) I, II, and III 
B) I 
C) I and II 
D) II and III

Quizplus · Accepted Answer

The Answer of (Figure: External Marginal Cost III) Which of the following statements is (are) TRUE?  I. The socially optimal quantity is 3.
II) The deadweight loss associated with the perfectly competitive output level is $4.50.
III) The external marginal cost is $6.
A) I, II, and III 
B) I 
C) I and II 
D) II and III

(Figure: External Marginal Cost III) Which of the Following Statements