The socially efficient level of output is determined where _____
A)marginal social cost equals marginal social benefit.
B)marginal private cost equals marginal social benefit.
C)average social cost equals average private cost.
D)average private cost equals average social benefit.
E)total social cost equals total social benefit.

Question

Quizplus · Accepted Answer

The socially efficient level of output is where marginal social cost (MSC) equals marginal social benefit (MSB). This ensures that the costs and benefits to society as a whole are balanced and maximized, leading to an optimal allocation of resources.

The Socially Efficient Level of Output Is Determined Where _____