To maximize the net social benefit received from a good or service, it should be produced up to the point where its marginal social benefit is equal to its marginal social cost.

Question

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This statement describes the concept of allocative efficiency in economics, which suggests that producing a good or service up to the point where its marginal social benefit equals its marginal social cost leads to the most efficient use of resources and maximizes overall social welfare.

To Maximize the Net Social Benefit Received from a Good