-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
E) 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 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 
E) None of the above answers is correct.

Quizplus · Accepted Answer

In a market with no government intervention, the equilibrium is determined where the marginal private cost equals the marginal social benefit. This typically occurs at the quantity where these two curves intersect, which is given as 50 goats.

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