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; fewer
B) more; fewer
C) more; more
D) fewer; more

Question

Quizplus · Accepted Answer

When the marginal social benefit is less than the marginal social cost, it indicates overproduction. Producing fewer slices of pizza and reallocating resources to produce more of other goods will lead to more efficient resource use.

At the Current Level of Output, the Marginal Social Benefit