The optimal amount of social regulation occurs where the marginal benefit of such regulation
A) equals the marginal cost.
B) exceeds the marginal cost by the greatest amount.
C) is zero.
D) is at its maximum.

Question

Quizplus · Accepted Answer

The optimal amount of social regulation occurs where the marginal benefit of such regulation equals the marginal cost. This is because in this situation, the benefits derived from the regulation are exactly equal to the costs incurred, meaning that any additional regulation would result in negative net benefits. Thus, the optimal level of social regulation is at the point where the benefits and costs are balanced.

The Optimal Amount of Social Regulation Occurs Where the Marginal