Question:

At the socially optimum quantity of production price equals...?

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At the socially optimum quantity of production price equals...

a.marginal cost

b.average total cost

c.average variable cost

d.marginal revenue

AND WHY?

I believe it's marginal cost.

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1 ANSWERS


  1. I think "B" should be right.

    Because it allows companies to stay in business in long-run and at the same time maximizes their output thus maximizing consumer surplus.

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