The marginal social cost of bread exceeds the marginal social benefit at the current weekly output.Therefore,

Question

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When the marginal social cost of producing a good exceeds the marginal social benefit, it means that society is overproducing that good. In this case, too much bread is being produced, which results in a negative impact on society. To achieve efficiency, which means producing the optimal amount of goods that maximizes social welfare, a reduction in weekly output of bread is necessary. Therefore, the correct choice is C.

The Marginal Social Cost of Bread Exceeds the Marginal Social