The Socially Optimal Level of Output Is the Quantity Where

question 81

Multiple Choice

The socially optimal level of output is the quantity where all marginal costs of production, private plus external, equal the

• A) average benefit to society.
• B) total benefit to society.
• C) marginal cost of production.
• D) marginal benefit to society.
• E) marginal benefit to the firm.

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Definitions:

Taxes

Essential monetary obligations or assorted forms of taxes imposed on individuals by government organizations, designed to facilitate government budgeting and various public expenditure.

Average Tax Rate

The proportion of total income that is paid in taxes, calculated by dividing the total tax paid by the taxpayer’s total income.

Taxable Income

The portion of an individual's or organization's income used to calculate how much tax will be owed to the government.

Federal Government

The national government of a federated state, which holds the authority to govern the country at a national or federal level, distinct from regional or local governments.