3982EconomicsMedium
If a benevolent social planner chooses to produce more 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
Ctotal surplus is maximized
Dproducer surplus is maximized
Ethe value placed on the last unit of production by buyers exceeds the cost of production
Correct answer
A. the cost of production on the last unit produced exceeds the value placed on it by buyers.
Explanation
The correct answer is the cost of production on the last unit produced exceeds the value placed on it by buyers..