Economics 9708 · AS & A Level · 7.4

7.4 — practice question

The diagram illustrates the private and social marginal costs and benefits for a demerit good. What is the socially optimal output level?

  • APoint A (as shown on diagram)
  • BPoint B (as shown on diagram)
  • CPoint C (as shown on diagram)
  • DPoint D (as shown on diagram)

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