For production to be at the ________ level of output, marginal benefit must equal social cost.
A) profit-maximizing
B) loss-minimizing
C) shut-down
D) efficient

Question

Quizplus · Accepted Answer

For production to be at the efficient level of output, the marginal benefit (the additional benefit received from consuming one more unit of a good or service) must equal the social cost (the total cost society pays for the production of an extra item, including both the private cost and any external costs). This principle ensures that resources are allocated in a way that maximizes the overall benefit to society.

For Production to Be at the ________ Level of Output