-The above figure shows the marginal social benefit, marginal private cost and marginal social cost of producing steel. If the market is competitive and unregulated, the equilibrium quantity of steel is ________ tons and the efficient quantity of steel is ________ tons.
A) 2; 2
B) 2; 4
C) 4; 2
D) None of the above answers is correct.

Question

-The above figure shows the marginal social benefit, marginal private cost and marginal social cost of producing steel. If the market is competitive and unregulated, the equilibrium quantity of steel is ________ tons and the efficient quantity of steel is ________ tons.
A) 2; 2 
B) 2; 4 
C) 4; 2 
D) None of the above answers is correct.

Quizplus · Accepted Answer

In a competitive and unregulated market, equilibrium occurs where marginal private cost equals marginal social benefit, which is at 4 tons. The efficient quantity, where marginal social cost equals marginal social benefit, is at 2 tons.

-The Above Figure Shows the Marginal Social Benefit, Marginal Private