Resources are efficiently utilized when production is such that marginal social benefit
A) is equal to marginal social cost.
B) exceeds marginal social cost by as much as possible.
C) is less than 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 marginal social benefit equals marginal social cost, as this indicates that the resources are being used in a way that maximizes social welfare.

Resources Are Efficiently Utilized When Production Is Such That Marginal