When the efficient quantity of output is produced
A) the marginal social benefit of the last unit produced is equal to the marginal social cost of the last unit produced.
B) the sum of consumer surplus and producer surplus is maximized.
C) resources are used in the activities in which they are most highly valued.
D) All of the above answers are correct.

Question

Quizplus · Accepted Answer

When the efficient quantity of output is produced, the marginal social benefit equals the marginal social cost, maximizing the sum of consumer and producer surplus, and ensuring resources are used in their most valued activities.

When the Efficient Quantity of Output Is Produced