Figure 15-6

-Refer to Figure 15-6.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 15-6
 
-Refer to Figure 15-6.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. At this point, total surplus is maximized.

Figure 15-6 -Refer to Figure 15-6.To Maximize Total Surplus,a Benevolent Social Planner