The market mix of output and the optimal mix of output are always the same.

Question

Quizplus · Accepted Answer

The market mix of output refers to the actual combination of goods and services that are produced and sold in the market. The optimal mix of output refers to the combination of goods and services that maximizes social welfare, and may be different from the market mix, which only takes into account the preferences of consumers and the profitability of firms. Therefore, the market mix and the optimal mix of output are not always the same.

The Market Mix of Output and the Optimal Mix of Output