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 social benefit (MSB) is equal to the marginal social cost (MSC). From the table, we can see that MSB and MSC intersect at a quantity of 3 units of output. At this point, the total social benefit is $40 and the total social cost is $15, resulting in a net social benefit of $25. Therefore, the best choice is to produce 3 units of output, as it maximizes the net social benefit.

The Following Table Shows the Costs and Benefit of Producing