Suppose there is no external benefit. The efficient output level is attained if
A. the marginal social benefit is equal to the marginal private benefit.
B. the marginal social cost is equal to the marginal private benefit.
C. the marginal social benefit is equal to the marginal private cost.
D. Insufficient information to determine
Answer:B
Suppose there is no external benefit. The efficient output level is attained if
A. the marginal social benefit is equal to the marginal private benefit. B. the marginal social cost is equal to the marginal private benefit. C. the marginal social benefit is equal to the marginal private cost. D. Insufficient information to determine