An outcome is socially optimal if it:
A)follows from a market equilibrium.
B)follows from collective action.
C)leaves no money on the table.
D)maximizes total economic surplus.

Question

Quizplus · Accepted Answer

Maximizing total economic surplus means that the outcome provides the greatest net benefit to all parties involved, which is considered socially optimal. The other choices (A, B, C) may not necessarily result in the most efficient or beneficial outcome for society as a whole.

An Outcome Is Socially Optimal If It