optimal production

What Is The Socially Optimal Level Of Output?

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What Is The Socially Optimal Level Of Output? The output level that reflects all the costs and benefits associated with a transaction i.e. it is the equilibrium that would be achieved if the market outcome reflects the effect of externalities. What is the socially optimal level of output for a monopoly? The allocatively efficient quantity

What Must Producers Do To Generate Higher Profits?

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What Must Producers Do To Generate Higher Profits? The general rule is that the firm maximizes profit by producing that quantity of output where marginal revenue equals marginal cost. The profit maximization issue can also be approached from the input side. How do producers maximize their profit? The general rule is that the firm maximizes