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

Question

Quizplus · Accepted Answer

When the marginal social cost exceeds the marginal social benefit, it indicates overproduction of sandwiches, meaning too many sandwiches are being produced and too little of other goods.

At the Current Level of Output, the Marginal Social Cost