In a market for a pure private good (the good generates no external costs or benefits), the market equilibrium quantity Q*
is ______ because at Q* the marginal benefit to society, MB(Q*), ______
efficient; is greater than the marginal cost to society, MC(Q*), i.e., MB(Q*) > MC(Q*).
efficient; is less than the marginal cost to society, MC(Q*), i.e., MB(Q*) < MC(Q*).
inefficient; equals the marginal cost to society, MC(Q*), i.e., MB(Q*) = MC(Q*).
inefficient; plus the marginal cost to society, MC(Q*), equals zero, i.e., MB(Q*) + MC(Q*) = 0.
efficient; equals the total benefit to society, TB(Q*), i.e., MB(Q*) = TB(Q*).
efficient; equals the marginal cost to society, MC(Q*), i.e., MB(Q*) = MC(Q*).