What would the socially efficient level of output


Assume the following: The external marginal cost of producing electricity is MCexternal = 6Q while the internal marginal cost is MCinternal = 4Q. The inverse demand for electricity is given by P = 120 - 2Q.

What would the socially efficient level of output be?

I) 5
II) 8
III) 10
IV) 15
V) 20

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Microeconomics: What would the socially efficient level of output
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