equilibrium = marginal private cost = marginal private benefit
maximizing well being = marginal social cost = marginal social benefit
What condition must be met in order to conclude that an economy is maximizing social well-being? Do the equilibriums given by individual markets necessarily lead to the maximization of social well-being (that is, if demand is equal to supply, can you conclude that well-being is maximized)? Explain why/why not making sure to discuss marginal social benefits and costs, marginal private benefits and costs, and demand and supply.
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