-The figure above illustrates the marginal private cost and the marginal social cost to the city of Seattle for each rock concert that is offered.It also illustrates the marginal private benefit.There is no external benefit.The efficient number of concerts in Seattle is
A) 0.
B) 5.
C) 10.
D) 20.
E) 15.

Question

-The figure above illustrates the marginal private cost and the marginal social cost to the city of Seattle for each rock concert that is offered.It also illustrates the marginal private benefit.There is no external benefit.The efficient number of concerts in Seattle is
A) 0. 
B) 5. 
C) 10. 
D) 20. 
E) 15.

Quizplus · Accepted Answer

The efficient number of concerts occurs where the marginal social cost equals the marginal private benefit. Since there is no external benefit, the marginal social cost is the relevant cost to consider.

-The Figure Above Illustrates the Marginal Private Cost and the Marginal