Figure 10-11
-Refer to Figure 10-11. The socially optimal quantity of output is
A) 240 units, since the value to the buyer of the 240th unit is equal to the cost incurred by the seller of the 240th unit.
B) 240 units, since the value to society of the 240th unit is equal to the cost incurred by the seller of the 240th unit.
C) 420 units, since the value to the buyer of the 420th unit is equal to the cost incurred by the seller of the 420th unit.
D) 420 units, since the value to society of the 420th unit is equal to the cost incurred by the seller of the 420th unit.

Question

Figure 10-11 
-Refer to Figure 10-11. The socially optimal quantity of output is
A) 240 units, since the value to the buyer of the 240th unit is equal to the cost incurred by the seller of the 240th unit. 
B) 240 units, since the value to society of the 240th unit is equal to the cost incurred by the seller of the 240th unit. 
C) 420 units, since the value to the buyer of the 420th unit is equal to the cost incurred by the seller of the 420th unit. 
D) 420 units, since the value to society of the 420th unit is equal to the cost incurred by the seller of the 420th unit.

Quizplus · Accepted Answer

The Answer of Figure 10-11 
-Refer to Figure 10-11. The socially optimal quantity of output is
A) 240 units, since the value to the buyer of the 240th unit is equal to the cost incurred by the seller of the 240th unit. 
B) 240 units, since the value to society of the 240th unit is equal to the cost incurred by the seller of the 240th unit. 
C) 420 units, since the value to the buyer of the 420th unit is equal to the cost incurred by the seller of the 420th unit. 
D) 420 units, since the value to society of the 420th unit is equal to the cost incurred by the seller of the 420th unit.

Figure 10-11 -Refer to Figure 10-11. the Socially Optimal Quantity of Output