If Anthony instead maximized his profits by selling more output, then the social loss is less. If Anthony sold four units at $8, then the social cost is very nearly $1 + $2 + $3 = $6. The "very nearly" is so close to the number that we drop the "very nearly" and simply provide the number as the estimated social cost. | If Anthony instead maximized his profits by selling more output, then the social loss is less. If Anthony sold four units at $8, then the social cost is very nearly $1 + $2 + $3 = $6. The "very nearly" is so close to the number that we drop the "very nearly" and simply provide the number as the estimated social cost. |