A socially optimal equilibrium occurs when:
a. the marginal social cost of a given level of output is equal to the marginal social benefit.
b. the marginal private cost of a given level of output is equal to the marginal social benefit.
c. the marginal revenue from a unit of a good equals the marginal cost of production
d. the average revenue from a unit of a good equals the marginal cost of production.
a
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