If the socially optimal level of output for an industry is identical to the equilibrium output,there are

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Quizplus · Accepted Answer

If the socially optimal level of output is identical to the equilibrium output, it means that the market is already accounting for all the externalities (both external economies and diseconomies) and internal externalities. Hence, there are no externalities of substance, implying that the best choice is "no external economies or diseconomies" which is given in option C.

If the Socially Optimal Level of Output for an Industry