At the current quantity of pizza, the marginal social benefit is greater than the marginal social cost. Then
A) the number of pizzas produced is efficient.
B) more pizzas must be produced to reach the efficient level.
C) fewer pizzas must be produced to reach the efficient level.
D) revenue for pizza producers is maximized.

Question

Quizplus · Accepted Answer

The marginal social benefit is the additional benefit to society from producing one more unit of a good or service. The marginal social cost is the additional cost to society from producing one more unit of a good or service. If the marginal social benefit is greater than the marginal social cost, then society would benefit from producing more of the good or service.

At the Current Quantity of Pizza, the Marginal Social Benefit