A socially optimum price is a price set equal to a firm's marginal cost.

Name: A socially optimum price is a price set equal to a firm's marginal cost.
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A socially optimum price is set where the marginal social benefit equals the marginal social cost. However, setting a price equal to a firm's marginal cost would result in zero profits for the firm, which may not be desirable for the long-term health of the industry.

A Socially Optimum Price Is a Price Set Equal to a Firm's