In general, if a benevolent social planner wanted to maximise the total benefits received by buyers and sellers in a market, the planner should
A) choose a price below the market equilibrium price.
B) allow the market to seek equilibrium on its own.
C) choose any price the planner wants because the losses to the sellers (buyers) from any change in price are exactly offset by the gains to the buyers (sellers) .
D) choose a price above the market equilibrium price.
Correct Answer:
Verified
Q7: An example of positive analysis is studying
A)how
Q33: A competitive market outcome
A) maximises total surplus.
B)
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