The socially optimal outcome is achieved when the owner of property rights is a(n)________ and sells output in a competitive market.
A) experienced manager
B) profit-maximizer
C) skilled land owner
D) wealthy investor

Question

Quizplus · Accepted Answer

The socially optimal outcome occurs when resources are allocated efficiently, which is attained when the owner of property rights is a profit-maximizer and sells output in a competitive market. This ensures that the resources are being used in the most valuable way according to society's preferences. The other options do not necessarily lead to the socially optimal outcome.

The Socially Optimal Outcome Is Achieved When the Owner of Property