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A columnist is discussing how the efficien

题型:单项选择题

题目:

A columnist is discussing how the efficient quantity of output for a good or service is determined. These two statements appear in his column: Statement 1: The equilibrium quantity of production for a good or service can be considered efficient as long as the marginal social benefit of that quantity is greater than its marginal social cost. Statement 2: Subsidies and quotas typically result in production of a good or service in quantities at which the marginal social cost exceeds the marginal social benefit. Are these statements correct Statement 1 Statement 2 ()

A. Correct        Correct

B. Correct        Incorrect

C. Incorrect       Incorrect

答案:

参考答案:C

解析:

Statement 1 is incorrect. The efficient quantity of output is the quantity at which the marginal social benefit (demand) is equal to the marginal social cost (supply). Statement 2 is also incorrect. Subsidies typically lead to overproduction, where the marginal social cost at the quantity produced is greater than the marginal social benefit. Quotas, however, typically limit production to a level below equilibrium, such that the marginal social benefit at the quantity produced is greater than the marginal social cost.

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