What happens if a well-intentioned social planner decides to produce less than the market equilibrium quantity of a good?

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The overall surplus reaches its highest point.Buyers value the last unit produced more than it costs to make it.Producers achieve the maximum possible surplus.The production cost of the final unit is greater than the value buyers assign to it.Consumers gain the greatest possible surplus.

Explanation

When production is below the equilibrium quantity, the value buyers place on the last unit produced is higher than the cost of producing it, indicating that additional gains from trade are possible. Therefore, total surplus is not maximized, and neither producer nor consumer surplus reaches its peak.