Suppose the marginal cost of producing a good falls so that the marginal social cost curve shifts downward. Then the efficient quantity to produce of that product
A) decreases.
B) does not change.
C) increases.
D) could increase, stay the same, or decrease.

Question

Quizplus · Accepted Answer

When the marginal social cost of producing a good falls, it becomes cheaper to produce each additional unit. Therefore, the efficient quantity to produce increases because it costs less to produce more, making it more efficient to produce a higher quantity.

Suppose the Marginal Cost of Producing a Good Falls So