The socially efficient level of output is determined where
A)marginal social cost equals marginal social benefit
B)marginal private cost equals marginal social benefit
C)average social cost equals average social benefit
D)average private cost equals average social benefit
E)total social cost equals total social benefit

Question

Quizplus · Accepted Answer

The socially efficient level of output is where marginal social cost (MSC) equals marginal social benefit (MSB), as this is the point at which society is allocating resources in a way that maximizes net social welfare. At this point, the costs and benefits to society as a whole are balanced, and any further production beyond this point would result in a net loss to society. Therefore, A is the best choice.

The Socially Efficient Level of Output Is Determined Where