Resources are efficiently utilised when production is such that marginal social benefit
A) exceeds marginal social cost by as much as possible.
B) is less than marginal social cost.
C) is equal to marginal social cost.
D) None of the above because efficiency has to do with property rights and has nothing to do with marginal social benefit or marginal social cost.

Question

Quizplus · Accepted Answer

Resources are efficiently utilized when the marginal social benefit (MSB) is equal to the marginal social cost (MSC), as this indicates that the resources are being used in a way that maximizes societal welfare. This principle is a cornerstone of welfare economics.

Resources Are Efficiently Utilised When Production Is Such That Marginal