1920EconomicsMedium
If a benevolent social planner chooses to producer less than the equilibrium quantity of a good, then?
Athe cost of production on the last unit produced exceeds the value placed on it by buyers.
Bconsumer surplus is maximized
Cthe value placed on the last unit production by buyers exceeds the cost of production.
Dproducer surplus is maximized
Etotal surplus is maximized
Correct answer
C. the value placed on the last unit production by buyers exceeds the cost of production.
Explanation
The correct answer is the value placed on the last unit production by buyers exceeds the cost of production..