At the current quantity of table saws, the marginal social cost is more than the marginal social benefit. Then
A) production of table saws should be decreased to reach the efficient level.
B) production of table saws should be increased to reach the efficient level.
C) production of table saws is currently at the efficient level.
D) producer surplus will be larger than consumer surplus.

Question

Quizplus · Accepted Answer

When the marginal social cost exceeds the marginal social benefit, it indicates overproduction, and reducing production will help reach the efficient level where costs and benefits are balanced.

At the Current Quantity of Table Saws, the Marginal Social