In a competitive market, the output and price combination that maximizes social value is at the point where?

[Joe]

MR>MC.
MC=MR.
MC>MR.
total revenue is maximized.

[crwlnjeep]

MC = MR

At this point consumers get all they are willing to pay the cost of production for. And firms sell only products that the cost to produce is less than or equal to the price.

[simplicitus]

None of the above.

If you are looking at _social_ value, you have to consider externalities.
http://en.wikipedia.org/wiki/Externality
None of the possible answers do.

If and only if there are no externalities at all is the answer MR = MC. But in reality, there are always externalities.