Asked by Khaly Barry on May 16, 2024
Verified
Refer to Table 17-2. The socially efficient level of output supplied to this market is
A) 4,000
B) 5,000
C) 6,000
D) 8,000
Socially Efficient
A condition where resources are allocated in a way that maximizes the overall benefit to society, taking into account all costs and benefits.
Marginal Cost
The additional cost incurred by producing one more unit of a good or service.
- Investigate the efficacy of output in assorted market structures, encompassing perfect competition and monopolistic contexts.
Verified Answer
RB
Ronil BonnetMay 23, 2024
Final Answer :
C
Explanation :
The socially efficient level of output is where the price equals the marginal cost. Given the marginal cost is $16, the socially efficient output is at the quantity where the price is also $16, which is 6,000 subscriptions.
Learning Objectives
- Investigate the efficacy of output in assorted market structures, encompassing perfect competition and monopolistic contexts.