To maximize social welfare when there are no externalities,marginal private costs must be:
A) equal to marginal social costs.
B) less than marginal private benefits.
C) equal to marginal private benefits
D) greater than marginal private benefits.

Question

Quizplus · Accepted Answer

To maximize social welfare in the absence of externalities, marginal private costs should equal marginal private benefits, ensuring that resources are allocated efficiently.

To Maximize Social Welfare When There Are No Externalities,marginal Private