If the marginal social cost of producing a product exceeds the marginal social benefit, producers will produce less of it.

Question

Quizplus · Accepted Answer

If the marginal social cost exceeds the marginal social benefit, it indicates overproduction from a societal perspective, but producers may not reduce production unless influenced by regulations or market changes, as they focus on private costs and benefits.

If the Marginal Social Cost of Producing a Product Exceeds