-The above figure shows the marginal social benefit and marginal social cost curves of coffee in the nation of Kaffenia. Producing and consuming the efficient quantity of coffee in Kaffenia means that
A) the marginal social cost of the last pound of coffee is at the lowest possible value.
B) the marginal social benefit of the last pound of coffee is at its highest possible value.
C) to produce more coffee, the marginal social benefit of an additional pound of coffee is less than its marginal social cost.
D) All of the above are correct.

Question

-The above figure shows the marginal social benefit and marginal social cost curves of coffee in the nation of Kaffenia. Producing and consuming the efficient quantity of coffee in Kaffenia means that
A) the marginal social cost of the last pound of coffee is at the lowest possible value. 
B) the marginal social benefit of the last pound of coffee is at its highest possible value. 
C) to produce more coffee, the marginal social benefit of an additional pound of coffee is less than its marginal social cost. 
D) All of the above are correct.

Quizplus · Accepted Answer

At the efficient quantity, the marginal social benefit equals the marginal social cost. Producing more would mean the marginal social cost exceeds the marginal social benefit.

-The Above Figure Shows the Marginal Social Benefit and Marginal