Figure 10-2. The graph depicts the market for plastic.
-Refer to Figure 10-2. A benevolent social planner would like to see
A)200 units of plastic produced.
B)500 units of plastic produced.
C)650 units of plastic produced.
D)more than 650 units of plastic produced.

Question

Figure 10-2. The graph depicts the market for plastic. 
-Refer to Figure 10-2. A benevolent social planner would like to see
A)200 units of plastic produced. 
B)500 units of plastic produced. 
C)650 units of plastic produced. 
D)more than 650 units of plastic produced.

Quizplus · Accepted Answer

A benevolent social planner aims to maximize social welfare, which typically occurs where the marginal social benefit equals the marginal social cost. In many economic models, this is represented by the equilibrium quantity, which is often 500 units in such scenarios.