Producing the socially optimal (efficient) quantity of goods in an economy is consistent with
A) having prices set, for every good, as low as possible
B) positive externalities and no government intervention in the economy
C) achieving total maximum utility in the economy
D) the value of resources used to produce goods is, for each good, less than the value consumers place on the good
E) society's opportunity costs being understated

Question

Quizplus · Accepted Answer

Producing the socially optimal quantity of goods means achieving the maximum total utility in the economy, where resources are allocated efficiently, and the marginal cost of production equals the marginal benefit to consumers.

Producing the Socially Optimal (Efficient) Quantity of Goods in an Economy