If society will gain by producing less X, then it must be the case that currently A) P_X = MC_X. B) P_X MC_X. C) P_X MC_X or P_X

Name: If society will gain by producing less X, then it must be the case that currently A) P X = MC X . B) P X > MC X . C) P X X . D) either P X > MC X or P X X .
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Question

If society will gain by producing less X, then it must be the case that currently A) P_X = MC_X. B) P_X > MC_X. C) P_X < MC_X. D) either P_X > MC_X or P_X < MC_X.

Quizplus · Accepted Answer

If society will gain by producing less of X, it means the marginal social cost (MSC) of producing X is greater than the marginal social benefit (MSB), indicating overproduction.

If Society Will Gain by Producing Less X, Then It