In the above figure, 300,000 purses per month is
A) the efficient amount to produce because at 300,000 purses marginal social benefit equals marginal social cost.
B) the efficient amount to produce because at 300,000 purses marginal social benefit is greater than marginal social cost.
C) an inefficient amount to produce because at 300,000 purses marginal social benefit equals marginal social cost.
D) an inefficient amount to produce because producing 500,000 purses sets the marginal social benefit equal to zero.
A
You might also like to view...
If a person earns an 8 percent nominal rate of interest on his savings account in a year when inflation is 9 percent, the person's real rate of interest is
a. -1 percent. b. 1 percent. c. 8 percent. d. 9 percent.
Which of the following is true?
a. Due to anti-employment discrimination legislation that was passed in the early 1960s, there was a large increase in the earnings of women relative to men in the 1960s and 1970s. b. The female/male earnings ratio for full-time workers rose substantially between 1980 and 2010. c. The number of women preparing for careers as professionals has declined during the last two decades. d. In 2010, only about 42 percent of those completing college degrees were women.