When 2,000 hamburgers per day are produced, the marginal social benefit is $1.50 and the marginal social cost is $1.00. And when 7,500 hamburgers per day are produced, the marginal social benefit is $1.00 and the marginal social cost is $1.50. The efficient production quantity of hamburgers is ________ a day.
A) more than 7,500
B) 7,500
C) between 2,000 and 7,500
D) 2,000

Question

Quizplus · Accepted Answer

The efficient production quantity is where marginal social benefit equals marginal social cost. This occurs between 2,000 and 7,500 hamburgers, as the benefit decreases and cost increases across this range.

When 2,000 Hamburgers Per Day Are Produced, the Marginal Social