Which of the following statements is TRUE?
A) At the efficient quantity, marginal social benefit equals marginal social cost.
B) Marginal social cost increases as the quantity produced decreases.
C) Marginal social benefit decreases as the quantity consumed decreases.
D) If marginal social benefit exceeds marginal social cost by as much as possible, production is efficient.

Question

Quizplus · Accepted Answer

At the efficient quantity, marginal social benefit equals marginal social cost, ensuring that resources are allocated optimally without overproduction or underproduction.

Which of the Following Statements Is TRUE