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If the Marginal Social Benefit of One More Unit of a Good

Question 36

Multiple Choice

If the marginal social benefit of one more unit of a good is 10 and the marginal social cost of one more unit of a good is 11, then:


A) the output of the good is efficient.
B) a bureaucrat can still increase the bureau's budget.
C) a bureaucrat can increase the bureau's budget if the total social cost exceeds the total social benefit.
D) a bureaucrat can increase the bureau's budget if the total social cost is below the total social benefit.

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