The socially efficient level of production occurs where the marginal cost curve intersects
A)average variable cost.
B)average total cost.
C)demand.
D)marginal revenue.

Question

Quizplus · Accepted Answer

The socially efficient level of production occurs where the marginal cost curve intersects demand because at that point, the production level is such that the marginal cost is equal to the marginal benefit to society, which is represented by the demand curve. At this level, no further units should be produced as the cost of producing each additional unit exceeds the benefit to society. Therefore, the socially efficient level of production occurs where the marginal cost curve intersects demand.

The Socially Efficient Level of Production Occurs Where the Marginal