At the current level of output, the marginal social benefit of pizza exceeds the marginal social cost of pizza. Compared to the allocatively efficient quantity, we are producing too ________ pizza and too ________ of other goods.
A) much; little
B) much; much
C) little; little
D) little; much

Question

Quizplus · Accepted Answer

When the marginal social benefit exceeds the marginal social cost, it indicates that the current level of output is less than the allocatively efficient quantity. Therefore, we are producing too little pizza and too much of other goods.

At the Current Level of Output, the Marginal Social Benefit