-The above figure shows that the maximum amount a person is willing to pay for the 400th pretzel
A) is greater than the marginal social cost of the 400th pretzel.
B) is less than the marginal social benefit of the 400th pretzel.
C) and the marginal social benefit of the 400th pretzel are both $2.
D) is greater than the marginal social benefit of the 200th pretzel.

Question

-The above figure shows that the maximum amount a person is willing to pay for the 400th pretzel
A) is greater than the marginal social cost of the 400th pretzel. 
B) is less than the marginal social benefit of the 400th pretzel. 
C) and the marginal social benefit of the 400th pretzel are both $2. 
D) is greater than the marginal social benefit of the 200th pretzel.

Quizplus · Accepted Answer

The maximum amount a person is willing to pay for a good is equal to the marginal social benefit, and the figure indicates that both are $2 for the 400th pretzel.

-The Above Figure Shows That the Maximum Amount a Person