Question

Quantity Demanded Price
(Units) (Dollars per unit)
0 16
1 14
2 12
3 10
4 8
5 6
6 4
7 2
8 0.

If the marginal cost of production in this market is $4, what is the socially efficient quantity of output?
a. 5 units
b. 3 units
c. 4 units
d. 6 units