In the Production of Electricity with Fixed-Production Technology,the Socially Efficient

Multiple Choice

In the production of electricity with fixed-production technology,the socially efficient price is $2 and the socially efficient level of output is 400 units;the market equilibrium price is $1.50 and the market equilibrium quantity is 600 units.The total social gain from producing the socially efficient output rather than the private equilibrium output is:

A) $50
B) $200
C) $400
D) $600
E) There is not enough information to calculate it