Arrange the following steps to determine the socially optimal quantity in resource allocation: A) Identify marginal social cost B) Compare marginal social cost with marginal social benefit C) Adjust production to where marginal benefit equals marginal cost D) Determine the allocatively efficient output level

To determine the socially optimal quantity in resource allocation, we start by identifying the marginal social cost, which is the total cost to society of producing one more unit of a good. Next, we compare this cost with the marginal social benefit, which is the benefit to society from consuming that additional unit. After making this comparison, we adjust production until the marginal social benefit equals the marginal social cost, meaning that the benefits of producing one more unit are just equal to the costs. Finally, this process helps us find the allocatively efficient output level, where resources are used in the best possible way for society. For example, if producing one more bicycle costs society $200 but provides a benefit of $250, we should keep producing until those costs and benefits balance out.