Figure 10-4

-Refer to Figure 10-4.If this market is currently producing at Q₄,then total economic well-being would increase if output
A)increased beyond Q₄.
B)decreased to Q₂.
C)decreased to zero.
D)stayed at Q₄.

Question

Figure 10-4
 
-Refer to Figure 10-4.If this market is currently producing at Q₄,then total economic well-being would increase if output
A)increased beyond Q₄. 
B)decreased to Q₂. 
C)decreased to zero. 
D)stayed at Q₄.

Quizplus · Accepted Answer

Decreasing output to Q₂ would likely align production with the optimal level where marginal cost equals marginal benefit, increasing total economic well-being.

Figure 10-4 -Refer to Figure 10-4.If This Market Is Currently Producing at Is