Figure 21-1
-In Figure 21-1, the optimal amount of equality lies only between which points?

Question

Figure 21-1 
-In Figure 21-1, the optimal amount of equality lies only between which points?

Quizplus · Accepted Answer

The optimal amount of equality lies between points B and E, as this is where the marginal social benefit of equality is equal to its marginal social cost (shown by the intersection of the MSB and MSC curves). Beyond point E, the marginal social cost of equality exceeds its marginal social benefit, and so further attempts to achieve greater equality would result in inefficient outcomes.

Figure 21-1 -In Figure 21-1, the Optimal Amount of Equality Lies Only