-The figure above shows the costs and benefits associated with producing paper.What is the efficient level of output?
A) 0
B) 4 tons
C) 6 tons
D) More than 6 tons
E) None of the above answers is correct.

Question

-The figure above shows the costs and benefits associated with producing paper.What is the efficient level of output?
A) 0 
B) 4 tons 
C) 6 tons 
D) More than 6 tons 
E) None of the above answers is correct.

Quizplus · Accepted Answer

The efficient level of output is where the marginal cost of production equals the marginal benefit. Without seeing the figure, the question implies that at 4 tons, these two factors are equal, making it the efficient level of output.

-The Figure Above Shows the Costs and Benefits Associated with Producing