When the amount of output is such that marginal social benefit exceeds marginal social cost, then to reach the efficient quantity
A) production should be increased.
B) production should be decreased.
C) production should remain constant.
D) More information is needed to determine if production should be increased, decreased, or not changed.

Question

Quizplus · Accepted Answer

When marginal social benefit exceeds marginal social cost, it indicates that the benefits of producing an additional unit outweigh the costs, suggesting that increasing production will lead to a more efficient allocation of resources.

When the Amount of Output Is Such That Marginal Social