If the marginal social benefit of consuming a product exceeds the marginal social cost of producing it, social welfare is
A)increased by reducing output
B)decreased by expanding output
C)unchanged by expanding or reducing output
D)increased by expanding output
E)maximized

Question

Quizplus · Accepted Answer

If the marginal social benefit of consuming a product exceeds the marginal social cost of producing it, expanding output will increase social welfare as more of the product will be produced and consumed, leading to greater overall benefits than costs. Therefore, choice D is the best answer.

If the Marginal Social Benefit of Consuming a Product Exceeds