MCQOPTIONS
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| 1. |
If a benevolent social planner chooses to produce more than the equilibrium quantity of a good, then ? |
| A. | the value placed on the last unit of production by buyers exceeds the cost of production |
| B. | the cost of production on the last unit produced exceeds the value placed on it by buyers. |
| C. | consumer surplus is maximized |
| D. | total surplus is maximized |
| E. | producer surplus is maximized |
| Answer» C. consumer surplus is maximized | |