At the quantity of 200 bushels of apples, the marginal social benefit of a bushel of apples is $100 and the marginal social cost is $50. To produce the efficient quantity of apples
A) more apples should be produced.
B) fewer apples should be produced.
C) there should be no change in the amount of apples 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

The efficient quantity is achieved when marginal social benefit equals marginal social cost. Since the marginal social benefit ($100) is greater than the marginal social cost ($50), more apples should be produced to reach efficiency.

At the Quantity of 200 Bushels of Apples, the Marginal