Multiple Choice
Use the following figure to answer the question : Figure 20-1 : D1 and S1 are the private demand and supply curves,of a commodity produced by a competitive firm.S2 reflects the social marginal cost of production,while S0 represents the external marginal cost.
-From Figure 20-1,we can infer that the efficient output is:
A) 900 units.
B) 500 units.
C) 400 units.
D) 600 units.
Correct Answer:

Verified
Correct Answer:
Verified
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