Question

Resources are used efficiently in the sunhat market because when​ _______.    A. production is capital​ intensive, producer surplus is maximized B. marginal social benefit equals marginal social​ cost, total surplus is maximized C. new technologies are​ available, total surplus is maximized D. marginal social benefit equals marginal social​ cost, consumer surplus is maximized

Answer 1

Answer:

The correct answer is B

Explanation:

Resources are used efficiently in the sunhat market because when marginal social benefit equals marginal social cost, total surplus is maximized. Thus, From the given four options only the option B is the correct option.

MSC = Marginal Social cost

MSB = Marginal Social Benefit

It is becuase in the competitive market, the quantity that is supplied in the market in same to the quantity which is demanded.