-The figure above shows the market for milk. When the efficient quantity of milk is produced, the marginal social benefit from the last gallon is
A) $2.00.
B) $2.50.
C) $3.00.
D) $3.50.

Question

-The figure above shows the market for milk. When the efficient quantity of milk is produced, the marginal social benefit from the last gallon is
A) $2.00. 
B) $2.50. 
C) $3.00. 
D) $3.50.

Quizplus · Accepted Answer

The efficient quantity of milk is produced when the marginal social benefit equals the marginal social cost. In the context of the market, this is typically where the demand curve (representing marginal social benefit) intersects the supply curve (representing marginal social cost). The price at this intersection point is $3.00.

-The Figure Above Shows the Market for Milk