Tamil general essay

From figure , point E is the maximum point of net social benefit and M is the amount of government spending and taxes collected where MSB=MSC. This is as well depicted in figure where the difference between curve B1 and C1 (CF) is the net social benefit, being the excess of marginal social benefit over marginal social cost. The difference is basically the curve N. It is noted that when output 0D is taxed and spent by the government, MSB=MSC. The government should stop operation at point 0D because beyond point D, the loss is greater than the gain since area 0DG represents the maximum social advantage.

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Tamil general essay

tamil general essay


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