If output is produced at the level at which the marginal social benefit curve and the supply curve intersect, then

Name: If output is produced at the level at which the marginal social benefit curve and the supply curve intersect, then
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Quizplus · Accepted Answer

At the intersection of the marginal social benefit curve and the supply curve, the marginal social benefit equals the marginal social cost. This means that producing the output level at this point results in maximum social welfare and is considered socially desirable.

If Output Is Produced at the Level at Which the Marginal