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Question 16

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Use the following to answer questions below : Use the following to answer questions below :   -Refer to the graph of marginal private cost (MPC)  and marginal private benefit (MPB) . If production of this good gives rise to an external social benefit equal to $1 per unit produced, what is the socially optimal level of output? A)  4 B)  5 C)  6 D)  7
-Refer to the graph of marginal private cost (MPC) and marginal private benefit (MPB) . If production of this good gives rise to an external social benefit equal to $1 per unit produced, what is the socially optimal level of output?


A) 4
B) 5
C) 6
D) 7

Correct Answer:

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