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 private cost (MPC) equals the marginal social benefit (MSB), which occurs at a quantity of 3 units. At this quantity, the total cost is $9 and total benefit is $12, resulting in a net social benefit of $3. Any production level above or below 3 units would result in a net social benefit less than $3, making 3 units the best choice.

The Following Table Shows the Costs and Benefit of Producing