If a benevolent social planner chooses to producer less than the equilibrium quantity of a good, then ?

A. total surplus is maximized
B. the value placed on the last unit production by buyers exceeds the cost of production.
C. producer surplus is maximized
D. the cost of production on the last unit produced exceeds the value placed on it by buyers.
E. consumer surplus is maximized

Correct Answer: the value placed on the last unit production by buyers exceeds the cost of production. ✔

Last Updated: June 18, 2019