Suppose a good is produced in a perfectly competitive market. In this market the marginal social benefit (MSB

) exceeds the marginal private benefit (MPB) at every quantity. The marginal social cost (MSC) equals the marginal private cost (MPC

) at every quantity.

(A.) correctly labeled graph of the MSB

, MPB, MSC, and MPC

curves and show each of the following.

• (i) The market equilibrium quantity, labeled QM
• (ii) The socially optimal quantity, labeled QS
• (iii) The deadweight loss at the market equilibrium, shaded completely