Figure 15-8

-Refer to Figure 15-8.To maximize total surplus,a benevolent social planner would choose which of the following outcomes?
A) 100 units of output and a price of $10 per unit
B) 150 units of output and a price of $10 per unit
C) 150 units of output and a price of $15 per unit
D) 200 units of output and a price of $10 per unit

Question

Figure 15-8
 
-Refer to Figure 15-8.To maximize total surplus,a benevolent social planner would choose which of the following outcomes?
A) 100 units of output and a price of $10 per unit 
B) 150 units of output and a price of $10 per unit 
C) 150 units of output and a price of $15 per unit 
D) 200 units of output and a price of $10 per unit

Quizplus · Accepted Answer

The socially optimal outcome is where marginal cost equals marginal benefit, which occurs at 150 units of output and a price of $15 per unit.

Figure 15-8 -Refer to Figure 15-8.To Maximize Total Surplus,a Benevolent Social Planner