A benevolent social planner (one who cares about society) 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 cost > private value = social value > private cost. B) social value = private cost = social cost > private value. C) social value = private value = private cost < social cost. D) social cost = private cost = private value < social value.
A benevolent social planner (one who cares about society) 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 cost > private value = social value > private cost. B) social value = private cost = social cost > private value. C) social value = private value = private cost < social cost. D) social cost = private cost = private value < social value.
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter4: Extent (how Much) Decisions
Section: Chapter Questions
Problem 5MC
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A benevolent social planner (one who cares about society) 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 cost > private value = social value > private cost.
B) social value = private cost = social cost > private value.
C) social value = private value = private cost < social cost.
D) social cost = private cost = private value < social value.
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