Social cost-private cost-private value-social value

Reference no: EM13688676

A benevolent social planner would prefer that the output of good x be decreased from its current level if, at the current level of output of good x,

1. Social cost = private cost = private value < social value.

2. Private cost < social cost = private value = social value.

3. Social value = private value = private cost < social cost.

4. Social cost = private cost = private value = social value.

Reference no: EM13688676

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