At the current level of output, the marginal social benefit from a slice of pizza is less than the marginal social cost of producing a slice of pizza. Resources will be used more efficiently if _______
Slices of pizza are produced and _______ other goods are produced.
A) fewer; more
B) more; fewer
C) fewer; fewer
D) more; more

Question

Quizplus · Accepted Answer

When the marginal social benefit of a product is less than its marginal social cost, it indicates that resources are being over-allocated to its production. Therefore, producing fewer slices of pizza and more of other goods would lead to a more efficient use of resources.

At the Current Level of Output, the Marginal Social Benefit