In the figure above,a private market will most likely produce
A) no satellites because of the free-rider problem.
B) 200 satellites because at this point marginal benefit equals marginal cost.
C) less than 200 satellites because over this output range marginal benefit exceeds marginal cost.
D) more than 200 satellites because over this output range marginal benefit is below marginal cost.
E) 200 satellites because at this point the market will be in equilibrium.

Question

Quizplus · Accepted Answer

The Answer of In the figure above,a private market will most likely produce
A) no satellites because of the free-rider problem.
B) 200 satellites because at this point marginal benefit equals marginal cost.
C) less than 200 satellites because over this output range marginal benefit exceeds marginal cost.
D) more than 200 satellites because over this output range marginal benefit is below marginal cost.
E) 200 satellites because at this point the market will be in equilibrium.

In the Figure Above,a Private Market Will Most Likely Produce