-The schedules in the table give the marginal social benefit and marginal social cost of a DVD. If there are no external benefits or external costs, the efficient number of DVDs to produce is ________ a week.
A) 1
B) 3
C) 5
D) any number less than 3

Question

-The schedules in the table give the marginal social benefit and marginal social cost of a DVD. If there are no external benefits or external costs, the efficient number of DVDs to produce is ________ a week.
A) 1 
B) 3 
C) 5 
D) any number less than 3

Quizplus · Accepted Answer

The efficient number of DVDs to produce is 3 a week because at that quantity, the marginal social benefit (MSB) equals the marginal social cost (MSC).

-The Schedules in the Table Give the Marginal Social Benefit