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