Figure 15-9
-Refer to Figure 15-9. To maximize total surplus, a benevolent social planner would choose which of the following outcomes?
A)100 units of output and a price of $20 per unit
B)150 units of output and a price of $20 per unit
C)150 units of output and a price of $30 per unit
D)200 units of output and a price of $20 per unit

Question

Figure 15-9 
-Refer to Figure 15-9. To maximize total surplus, a benevolent social planner would choose which of the following outcomes?
A)100 units of output and a price of $20 per unit 
B)150 units of output and a price of $20 per unit 
C)150 units of output and a price of $30 per unit 
D)200 units of output and a price of $20 per unit

Quizplus · Accepted Answer

A benevolent social planner would choose the outcome that maximizes total surplus, which is the sum of consumer surplus and producer surplus. The outcome that maximizes total surplus is 150 units of output and a price of $30 per unit.

Figure 15-9 -Refer to Figure 15-9. to Maximize Total Surplus, a Benevolent