Society will produce the efficient mix of output if all firms equate
A) price and marginal cost.
B) price and average total cost.
C) marginal cost and average total cost.
D) price and marginal revenue.

Question

Quizplus · Accepted Answer

For society to produce an efficient mix of output, firms must equate price and marginal cost. This condition ensures that resources are allocated in a way that maximizes consumer and producer surplus, leading to an efficient market outcome.

Society Will Produce the Efficient Mix of Output If All