In the figure given below,the competitive supply curve of a commodity is given by S 1 ,the private marginal benefit curve is D 1 ,the marginal social benefit curve is D 2 ,and the MB E curve reflects the marginal external benefits.
-In Figure 20-2,the efficient output is _____ than the market equilibrium output by _____ units.
A)more;300
B)less;300
C)more;100
D)less;100

Question

In the figure given below,the competitive supply curve of a commodity is given by S 1 ,the private marginal benefit curve is D 1 ,the marginal social benefit curve is D 2 ,and the MB E curve reflects the marginal external benefits. 
-In Figure 20-2,the efficient output is _____ than the market equilibrium output by _____ units.
A)more;300 
B)less;300 
C)more;100 
D)less;100

Quizplus · Accepted Answer

The Answer of In the figure given below,the competitive supply curve of a commodity is given by S 1 ,the private marginal benefit curve is D 1 ,the marginal social benefit curve is D 2 ,and the MB E curve reflects the marginal external benefits. 
-In Figure 20-2,the efficient output is _____ than the market equilibrium output by _____ units.
A)more;300 
B)less;300 
C)more;100 
D)less;100

In the Figure Given Below,the Competitive Supply Curve of a Commodity