In the figure above,the efficient quantity of satellites to produce is
A) 200, because this is where marginal benefit equals marginal cost.
B) 200, because this is where the market is in equilibrium.
C) anywhere below 200, i.e., where marginal benefit exceeds marginal cost.
D) anywhere above 200, i.e., where marginal benefit is below marginal cost.
E) zero, because no one is willing to pay for satellites.

Question

Quizplus · Accepted Answer

The efficient quantity of satellites to produce is where marginal benefit equals marginal cost. In the given figure, this point is at Q = 200. Therefore, the correct answer is A.

In the Figure Above,the Efficient Quantity of Satellites to Produce