Refer to the graph below. To achieve economic efficiency, which output level should be produced? Price (dollars per cup) $2.20 $2.00 $1.80 14.000 15.000 16,000 Supply Demand Quantity (cups per month) Any of the output levels above is efficient. OA OB 16,000 cups per month, because at this level of output, marginal benefit is less than marginal cost. 15,000 cups per month, because at this level of output, marginal benefit is equal to marginal cost. 14,000 cups per month, because at this level of output, marginal benefit is greater than marginal cost. OC D.

Refer to the graph below. To achieve economic efficiency, which output level should be produced? Price (dollars per cup) $2.20 $2.00 $1.80 14.000 15.000 16,000 Supply Demand Quantity (cups per month) Any of the output levels above is efficient. OA OB 16,000 cups per month, because at this level of output, marginal benefit is less than marginal cost. 15,000 cups per month, because at this level of output, marginal benefit is equal to marginal cost. 14,000 cups per month, because at this level of output, marginal benefit is greater than marginal cost. OC D.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter11: Public Goods And Common Resources

Section: Chapter Questions

Problem 9PA

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