-The above figure shows the marginal social benefit and marginal social cost curves of chocolate in the nation of Kaffenia. When the marginal social benefit is equal to the marginal social cost of chocolate in Kaffenia
A) either 100 pounds or 250 pounds can be produced each day.
B) no chocolate is produced.
C) 150 pounds will be produced each day.
D) any quantity up to 150 pounds will be efficient.

Question

-The above figure shows the marginal social benefit and marginal social cost curves of chocolate in the nation of Kaffenia. When the marginal social benefit is equal to the marginal social cost of chocolate in Kaffenia
A) either 100 pounds or 250 pounds can be produced each day. 
B) no chocolate is produced. 
C) 150 pounds will be produced each day. 
D) any quantity up to 150 pounds will be efficient.

Quizplus · Accepted Answer

When the marginal social benefit equals the marginal social cost, it indicates the socially optimal level of production, which is 150 pounds in this scenario.

-The Above Figure Shows the Marginal Social Benefit and Marginal