The socially efficient level of production occurs where the marginal cost curve intersects which of the following curves?
A)Average variable cost
B)Average total cost
C)Demand
D)Marginal revenue

Question

Quizplus · Accepted Answer

The socially efficient level of production occurs where the marginal cost curve intersects the demand curve. At this point, the price paid by consumers is equal to the marginal cost of production, resulting in an optimal allocation of resources from society's perspective. This leads to the maximal satisfaction of consumer demand while minimizing the costs of production. Therefore, the socially efficient level of production is achieved when production is aligned with consumer preferences and societal welfare.

The Socially Efficient Level of Production Occurs Where the Marginal