Figure 10-11

-Refer to Figure 10-11."The social value of the last unit produced exceeds the private cost of the last unit produced by $9." This statement is correct at which quantity of output?
A) 140 units
B) 180 units
C) 220 units
D) 260 units

Question

Figure 10-11
 
-Refer to Figure 10-11."The social value of the last unit produced exceeds the private cost of the last unit produced by $9." This statement is correct at which quantity of output?
A) 140 units 
B) 180 units 
C) 220 units 
D) 260 units

Quizplus · Accepted Answer

According to the graph, the private cost of producing 220 units is $30 per unit, whereas the social value of the last unit produced is $39 per unit. The difference between the social value and private cost is $9, which satisfies the condition given in the statement. Therefore, C) 220 units is the correct answer.

Figure 10-11 -Refer to Figure 10-11."The Social Value of the Last Unit