Asked by Melody Walls on May 02, 2024
Verified
Refer to Figure 15.1. From society's point of view, the efficient level of output is
A) 20 haircuts.
B) 23 haircuts.
C) 25 haircuts.
D) 30 haircuts.
Efficient Level
The optimum point at which a particular function, operation, or activity is most effective or produces the best results with the least waste of resources.
Society's View
The collective opinions, beliefs, and values held by the majority of people in a society about a particular topic.
- Acquire insight into how efficiency is affected in monopolistic competition versus perfect competition.
Verified Answer
AA
Amanda AguileraMay 07, 2024
Final Answer :
C
Explanation :
The efficient level of output from society's point of view is where the marginal social benefit equals the marginal social cost. Without seeing Figure 15.1, this principle typically guides the identification of the efficient output level, which is often depicted as the point where the demand curve (representing marginal social benefit) intersects the supply curve (representing marginal social cost). Given the options, 25 haircuts is chosen based on this economic principle, assuming it corresponds to that equilibrium point in the figure.
Learning Objectives
- Acquire insight into how efficiency is affected in monopolistic competition versus perfect competition.