Suppose the marginal cost of producing a good falls so that the marginal social cost curve shifts downward. Then the efficient quantity to produce of that product
A) increases.
B) does not change.
C) decreases.
D) could increase, stay the same, or decrease.

Question

Quizplus · Accepted Answer

When the marginal social cost curve shifts downward, it indicates that the cost of producing each additional unit has decreased, making it efficient to produce more of the good, thus increasing the efficient quantity.

Suppose the Marginal Cost of Producing a Good Falls So