The optimal amount of social regulation occurs where the marginal benefit of such regulation:

A) equals the marginal cost.
B) exceeds the marginal cost by the greatest amount.
C) is zero.
D) is at its maximum.

Marginal Cost

The increase in cost that arises from an additional unit of production.

Social Regulation

Laws and regulations aimed at improving health, safety, and well-being in society, often implemented to correct market failures affecting the public interest.

Marginal Benefit

The additional satisfaction or value a consumer gains from consuming one more unit of a good or service.