The efficient level of paper production will occur where the
A)marginal private benefit from consuming paper is equal to the marginal social cost of production.
B)marginal social benefit from consuming paper is equal to the marginal social cost of production.
C)economically efficient level of the output of paper is equal to the economically efficient level of inputs.
D)production of paper no longer produces negative externalities.

Question

Quizplus · Accepted Answer

The efficient level of production occurs where the marginal private benefit from consuming paper is equal to the marginal social cost of production. This is because at this point, the social benefits of producing paper are equal to the social costs of producing paper, and there is no net gain or loss to society from producing more or less paper.

The Efficient Level of Paper Production Will Occur Where the