In a first-best world, for any commodity, the price of the commodity, the private marginal benefit, the private marginal cost of producing it, the social marginal benefit, and the social marginal cost are all equal at the margin.

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In a first-best world, there are no market failures such as externalities or monopolies which would cause a divergence between private and social marginal benefits/costs. Therefore, the price, private marginal benefit/cost, and social marginal benefit/cost are all equal at the margin.

In a First-Best World, for Any Commodity, the Price of the Commodity