Refer to Figure 10-5. A benevolent social planner would prefer

A) a $24 price to any other price.
B) 70 units to any other quantity of output.
C) a subsidy of $30 per unit to a subsidy of $27 per unit.
D) a tax of $27 per unit to a subsidy of $27 per unit.

Social Planner

A theoretical decision-maker in economics who aims to achieve optimal outcomes for society by considering the allocation of resources and distribution of goods and services.

Subsidy

A payment made by the government to a firm, industry, or individual, usually to encourage the production of a certain good or service or to reduce its price for consumers.

Output

The quantity of goods or services produced in a given time period, by a firm, industry, or country.