00:01
So this statement say economic surplus is greatest at the level of output where the difference between marginal benefit and marginal cost is largest.
00:10
So you should disagree with the statement.
00:14
So let's draw a graph on it.
00:17
So quantity, price, and demand curve and supply curve.
00:23
So let's look at from the very first unit.
00:27
So this will be the, for the very first unit, this will be the marginal benefit and this will be the marginal cost.
00:38
So you can see that at the very first unit, the margin benefit and margin cost, the difference between them is very large, but as we increase some units, the difference of marginal benefit and marginal cost start to decrease.
00:53
So we should continue this one and you add this equivalent point...