Use the figure below to answer the following questions. Figure 5.3.1
-Refer to Figure 5.3.1.If the quantity produced is 100,
A)marginal social benefit exceeds marginal social cost.
B)marginal social cost exceeds marginal social benefit.
C)production is efficient.
D)marginal social benefit is minimized.
E)deadweight loss is zero.

Question

Use the figure below to answer the following questions.  Figure 5.3.1
-Refer to Figure 5.3.1.If the quantity produced is 100,
A)marginal social benefit exceeds marginal social cost. 
B)marginal social cost exceeds marginal social benefit. 
C)production is efficient. 
D)marginal social benefit is minimized. 
E)deadweight loss is zero.

Quizplus · Accepted Answer

If the quantity produced is 100 and marginal social benefit exceeds marginal social cost, it indicates that the benefits to society of producing one more unit are greater than the costs, suggesting underproduction and inefficiency.

Use the Figure Below to Answer the Following Questions