-The above figure shows the marginal private cost curve, marginal social cost curve, and marginal social benefit curve for cod, a common resource. The efficient outcome is
A) 0 tons per week.
B) 300 tons per week.
C) 400 tons per week.
D) None of the above answers is correct.

Question

-The above figure shows the marginal private cost curve, marginal social cost curve, and marginal social benefit curve for cod, a common resource. The efficient outcome is
A) 0 tons per week. 
B) 300 tons per week. 
C) 400 tons per week. 
D) None of the above answers is correct.

Quizplus · Accepted Answer

The efficient outcome occurs where the marginal social cost equals the marginal social benefit. This is typically the point where the marginal social cost curve intersects the marginal social benefit curve, which is at 300 tons per week.

-The Above Figure Shows the Marginal Private Cost Curve, Marginal