Figure 10-2

-Refer to Figure 10-2.At Q₃,how does a consumer value the cost of the product
A)The marginal consumer values this product less than the social cost of producing it.
B)Every consumer values this product less than the social cost of producing it.
C)The cost to society is equal to the value to society.
D)The marginal consumer values this product more than the private cost.

Question

Figure 10-2
 
-Refer to Figure 10-2.At Q₃,how does a consumer value the cost of the product
A)The marginal consumer values this product less than the social cost of producing it. 
B)Every consumer values this product less than the social cost of producing it. 
C)The cost to society is equal to the value to society. 
D)The marginal consumer values this product more than the private cost.

Quizplus · Accepted Answer

At point Q₃, the social cost of producing the product is higher than the marginal consumer's value. This indicates that the marginal consumer values the product less than the social cost of producing it.

Figure 10-2 -Refer to Figure 10-2.At Q₃,how Does a Consumer Value the a Consumer