Production by a monopolist would result in the socially optimal allocation of resources if _____

Name: Production by a monopolist would result in the socially optimal allocation of resources if _____
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Question

Quizplus · Accepted Answer

In a socially optimal allocation of resources, the price of a good should equal its marginal cost. This ensures that the quantity of the good produced and consumed is at a level where the last unit provides a benefit to consumers that is equal to the cost of producing it, maximizing total welfare.

Production by a Monopolist Would Result in the Socially Optimal