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

Multiple Choice

Figure 10-10
-Refer to Figure 10-10. The socially optimal quantity of output is

A) 120 units, since the value to the buyer of the 120^th unit is equal to the cost incurred by the seller of the 120^th unit.
B) 120 units, since the value to the buyer of the 120^th unit is equal to the cost incurred by society of the 120^th unit.
C) 160 units, since the value to the buyer of the 160^th unit is equal to the cost incurred by the seller of the 160th unit.
D) 160 units, since the value to the buyer of the 160^th unit is equal to the cost incurred by society of the 160^th unit.