A situation in which the price charged is equal to society's opportunity cost is known as

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Marginal cost pricing is when the price charged is equal to the cost of producing an additional unit of the good or service. This is considered the socially optimal price because it ensures that society is not sacrificing more than it needs to in order to produce the good or service. Market failure occurs when the market does not allocate resources efficiently, and marginal monopoly pricing refers to a situation where a monopolist sets the price above marginal cost in order to maximize profits. Marginal profits are the additional profits earned from producing and selling one more unit of a good or service.

A Situation in Which the Price Charged Is Equal to Society's