-In the above figure, if output were restricted to 300 million pounds of turkey, then
A) the marginal social benefit would exceed the marginal social cost on the last pound of turkey traded by $0.80.
B) there would be a deadweight loss of $40 million.
C) there would be inefficient underproduction of turkey.
D) All of the above answers are correct.

Question

-In the above figure, if output were restricted to 300 million pounds of turkey, then
A) the marginal social benefit would exceed the marginal social cost on the last pound of turkey traded by $0.80. 
B) there would be a deadweight loss of $40 million. 
C) there would be inefficient underproduction of turkey. 
D) All of the above answers are correct.

Quizplus · Accepted Answer

If output is restricted to 300 million pounds, the marginal social benefit exceeds the marginal social cost, indicating underproduction and resulting in a deadweight loss.

-In the Above Figure, If Output Were Restricted to 300