-The above figure shows the marginal private cost curve,marginal social cost curve,and marginal social benefit curve for raising goats on a common pasture.The efficient outcome is raising ________.
A) 0 goats
B) 40 goats
C) 50 goats
D) 55 goats
E) None of the above answers is correct.

Question

-The above figure shows the marginal private cost curve,marginal social cost curve,and marginal social benefit curve for raising goats on a common pasture.The efficient outcome is raising ________.
A) 0 goats 
B) 40 goats 
C) 50 goats 
D) 55 goats 
E) None of the above answers is correct.

Quizplus · Accepted Answer

The efficient outcome in this scenario is where the marginal social benefit curve intersects the marginal social cost curve. This point represents the optimal level of production (or in this case, the number of goats raised) where the social benefits of raising goats equal the social costs, including any externalities. Without seeing the actual figure, the principle of economic efficiency dictates this intersection as the point of optimal allocation of resources.

-The Above Figure Shows the Marginal Private Cost Curve,marginal Social