Figure 9.15
-Refer to Figure 9.15.The economically efficient output level is

Question

Figure 9.15 
-Refer to Figure 9.15.The economically efficient output level is

Quizplus · Accepted Answer

The economically efficient output level is where the marginal benefit equals the marginal cost, which is represented by the intersection of the demand and supply curves. In this graph, the intersection occurs at point U1 where QS1 and DS1 intersect. The efficient output level is then found on the horizontal axis, where the quantity demanded is equal to the quantity supplied, which corresponds to point B13. Thus, the economically efficient output level is Q₃ units.

Figure 9.15 -Refer to Figure 9.15.The Economically Efficient Output Level Is