If there is underproduction in a competitive market, the quantity produced is ________than the efficient quantity and the marginal benefit to society is________ than the marginal cost.

Question

Quizplus · Accepted Answer

Underproduction in a competitive market means that the quantity produced is less than the efficient quantity. As a result, the marginal benefit to society from producing an additional unit of the good is greater than the marginal cost of producing it. Therefore, the correct answer is D, where the quantity produced is less and the marginal benefit to society is greater than the marginal cost.

If There Is Underproduction in a Competitive Market, the Quantity