In the above figure, suppose the quantity produced is 40. Then ...

[panfilo]

In the above figure, suppose the quantity produced is 40. Then
 
  A) the marginal social cost of the 40th unit is 1.
  B) the willingness to pay for the 40th unit is 2, the equilibrium price.
  C) production is not efficient because MSB > MSC.
  D) production is not efficient because MSC>MSB.

Question 2

According to the budget line in the above figure, which of the following combinations is unaffordable?
 
  A) 1 pizza and 3 CDs
  B) 3 pizzas and 2 CDs
  C) 2 pizzas and 4 CDs
  D) All of the above are affordable.

[JYan]

Answer to Question 1

D

Answer to Question 2

C

[panfilo]

Thanks for the timely response, appreciate it

[dantucker]

Gracias!