A Socially Efficient Quantity of a Good Is Said to Be

question 96

Multiple Choice

A socially efficient quantity of a good is said to be produced,if at that output level:

• A)the marginal external cost equals the marginal social benefit.
• B)the private marginal cost equals the marginal social benefit.
• C)the marginal private costs are equal to external costs.
• D)the difference between the private marginal cost and social marginal benefit is maximized.

---

Definitions:

Quantities Purchased

The total number of units bought during a given period, often tracked for inventory or supply chain management.

Raw Materials

Basic materials that are used in the production process of goods, often transformed into finished products.

Fixed Overhead

Costs that do not vary with the level of production or sales, including rent, salaries, and insurance expenses.

Unfavorable Variance

A situation where actual results are worse than expected results, often indicating higher costs or lower revenues than planned.