The following table shows the costs and benefit of producing a commodity. Table 13.1

-According to Table 13.1,at the social equilibrium:

Question

The following table shows the costs and benefit of producing a commodity. Table 13.1
 
-According to Table 13.1,at the social equilibrium:

Quizplus · Accepted Answer

At the social equilibrium, the marginal social benefit (MSB) is equal to the marginal social cost (MSC). From the table, at an output of 3 units, MSB ($10) = MSC ($10), which is the social equilibrium. Thus, the best choice is answer D as 3 units of output is produced at the social equilibrium.

The Following Table Shows the Costs and Benefit of Producing