If a social planner were running a monopoly, that planner could achieve an efficient outcome by charging the price that is determined by the
A)minimum point on the average total cost curve.
B)intersection of the average total cost curve and the demand curve.
C)intersection of the marginal cost curve and the demand curve.
D)intersection of the marginal cost curve and the marginal revenue curve.

Question

Quizplus · Accepted Answer

An efficient outcome in a monopoly is achieved when the price is set where the marginal cost curve intersects the demand curve, as this reflects the true cost of producing an additional unit and the value consumers place on it.

If a Social Planner Were Running a Monopoly, That Planner