For the efficient level of output to be produced, marginal
A) private cost must equal zero.
B) benefit must equal marginal private cost.
C) social cost must be zero.
D) benefit must equal marginal social cost.

Question

Quizplus · Accepted Answer

The efficient level of output occurs when the marginal benefit equals the marginal social cost, ensuring that all externalities are accounted for in the production decision.

For the Efficient Level of Output to Be Produced, Marginal