The efficient quantity of output of a product with external costs ...

[Shelles]

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

[Kimmy]

Answer to Question 1

B

Answer to Question 2

D

[Shelles]

Gracias!

[Dnite]

Thanks for the timely response, appreciate it