Question

The year is 2278, and the starship enterprise is running low on dilithium crystals, which are used to regulate the matter/antimatter reactions to propel the ship across the universe. without the crystals, space-time travel is not possible. if the crystals are government owned or regulated, and the government wants to create the greatest welfare for society, the government should set the price

Answer 1

The correct options are these: The government should set the price:
1. AT THE EFFICIENT PRICE
2. USING THE MARGINAL COST PRICING RULE.
Because the dilithium crystals are owned and regulated by the government, in order for the government to create a great welfare for the economy it has to set the price of the dilithium crystals at efficient price. The efficient price refers to that price where the demand and supply for a particular product is at equilibrium.