Asked by Anthony Espino on Jul 07, 2024
Verified
Refer to Figure 16.3. The ________ level of output of this product is 15.
A) unregulated
B) efficient
C) break-even
D) market
Efficient Level
Refers to the state where resources are allocated in a way that maximizes the net benefit to society, often achieved when marginal cost equals marginal benefit.
- Comprehend the principle of optimal production volumes when faced with external effects.
- Clarify the way in which externalities induce an ineffective allocation of resources in the absence of regulatory measures by the government.
Verified Answer
LH
Lauren HuleattJul 13, 2024
Final Answer :
B
Explanation :
The efficient level of output is the quantity at which the marginal social benefit of consuming the product equals the marginal social cost of producing it, typically considered the socially optimal level of production.
Learning Objectives
- Comprehend the principle of optimal production volumes when faced with external effects.
- Clarify the way in which externalities induce an ineffective allocation of resources in the absence of regulatory measures by the government.