A benevolent social planner would prefer that the output of good x be increased from its current level if, at the current level of output of good x, A)social value = private value = private cost private value = social value private cost. C)social cost = private cost = private value private value.

Question

A benevolent social planner would prefer that the output of good x be increased from its current level if, at the current level of output of good x, A)social value = private value = private cost < social cost. B)social cost > private value = social value > private cost. C)social cost = private cost = private value < social value. D)social value = private cost = social cost > private value.

Quizplus · Accepted Answer

A benevolent social planner would prefer to increase the output of good x if the social value exceeds the private value and costs, indicating that the good provides more benefit to society than is currently being realized.

A Benevolent Social Planner Would Prefer That the Output of Good