Author Question: The efficient quantity of output of a product with external costs of production is A) where the ... (Read 106 times)

Shelles · **on:** Jun 29, 2018

The efficient quantity of output of a product with external costs of production is

A) where the demand curve and the producer's supply curve intersect.
B) where the marginal social cost curve and marginal social benefit curve intersect.
C) as low as possible.
D) zero.

Question 2

In the above figure, if the price is 16 per unit, how many units will a profit maximizing perfectly competitive firm produce?

A) 0
B) 20
C) 30
D) 35