Selling a good at a price determined by the intersection of the demand curve and the marginal cost curve is consistent with the

Question

3 years ago

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Selling a good at a price determined by the intersection of the demand curve and the marginal cost curve is consistent with the

(i) socially-optimal level of output. (ii) market solution for profit-maximizing competitive firms. (iii) market solution for a profit-maximizing monopoly.

Business

1 answer:

Tanya [424] · Answer 1 · 2022-07-31T21:07:36+03:00

Tanya [424]3 years ago

4 0

Answer: i - Socially optimal level of output

Explanation: At the point of intersection of the demand curve and the marginal cost, any quantity below this quantity, the marginal benefit to consumers overshadows the marginal cost to the producers.