-The above figure shows the marginal private cost curve, marginal social cost curve, and marginal social benefit curve for raising goats on a common pasture. The market equilibrium with no government intervention is raising
A) 0 goats.
B) 40 goats.
C) 50 goats.
D) 55 goats.

Question

-The above figure shows the marginal private cost curve, marginal social cost curve, and marginal social benefit curve for raising goats on a common pasture. The market equilibrium with no government intervention is raising
A) 0 goats. 
B) 40 goats. 
C) 50 goats. 
D) 55 goats.

Quizplus · Accepted Answer

In a market equilibrium without government intervention, the quantity of goats raised is determined where the marginal private cost equals the marginal social benefit. This occurs at 50 goats.

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