The efficient quantity of output occurs where the
A)company's marginal cost equals the last customer's marginal benefit.
B)company's marginal benefit equals the last customer's marginal cost.
C)price exceeds the marginal benefit.
D)price is just less than marginal benefit.

Question

Quizplus · Accepted Answer

The efficient quantity of output occurs where the company's marginal cost equals the last customer's marginal benefit. This is because at this point, the producer is producing just enough to satisfy the consumer's demand and the cost of producing that additional unit is equal to the value the consumer places on it, thus maximizing overall societal welfare.

The Efficient Quantity of Output Occurs Where the