Which of the following is a correct statement of the socially optimum price?
A)It is a price equal to the average cost.
B)It is a price equal to the marginal cost.
C)It is a price equal to the lowest average cost.
D)It is a price equal to the marginal revenue.

Question

Quizplus · Accepted Answer

The socially optimum price is the price that leads to the socially efficient level of output, where marginal cost equals marginal benefit. This occurs at the intersection of the supply and demand curves, and at this point, the socially optimum price is equal to marginal cost. Therefore, choice B - It is a price equal to the marginal cost - is the correct statement.

Which of the Following Is a Correct Statement of the Socially