When either the costs of production or the benefits of consumption to individuals differ from those of society:
A)the equilibrium output will be the socially optimal output.
B)the equilibrium is not efficient.
C)the allocation of resources remains correct.
D)the invisible hand had completely failed.

Question

Quizplus · Accepted Answer

Equilibrium is not socially optimal if individual costs and benefits differ from the costs and benefits experienced by society as a whole.

When Either the Costs of Production or the Benefits of Consumption