Q
If a benevolent social planner chooses to produce more than the equilibrium quantity of a good, then ?
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A
A. The value placed on the last unit of production by buyers exceeds the cost of production
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B
B. The cost of production on the last unit produced exceeds the value placed on it by buyers.
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C
C. Consumer surplus is maximized
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D
D. Total surplus is maximized
Correct Answer:
B. B. The cost of production on the last unit produced exceeds the value placed on it by buyers.
