The figure below shows the marginal benefit to consumers,MB,the marginal cost to private firms,MCP,and the marginal cost to society,MCS,at each level of output of some good.
FIGURE 17-1
-Refer to Figure 17-1.The equilibrium output that would occur in a competitive market in the absence of government intervention is
A) zero.
B) Q1.
C) Q2.
D) Q3.
E) none of the above; there is no equilibrium output level.
Correct Answer:
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