If the price the public pays for a good is above the marginal cost of producing the good,then
A) too many units of the good will be produced.
B) too few units of the good will be produced.
C) the correct amount of the good will be produced.
D) the good will not be produced at all.
E) the market is operating efficiently.

Question

Quizplus · Accepted Answer

When the price is above the marginal cost, it indicates that the good is underproduced, as producers could profitably produce more units, leading to too few units being produced relative to the socially optimal level.

If the Price the Public Pays for a Good Is