Suppose the private marginal cost of an activity exceeds its private marginal benefit at the level of the activity where society's net benefit is maximized. Based on this, society should want the amount of the activity to:
A) remain at the private-maximizing level.
B) increase from the private-maximizing level.
C) decrease from the private-maximizing level.
D) either increase or decrease from the private-maximizing level, depending on how much private marginal cost exceeds private marginal benefit.

Question

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The Answer of Suppose the private marginal cost of an activity exceeds its private marginal benefit at the level of the activity where society's net benefit is maximized. Based on this, society should want the amount of the activity to:
A) remain at the private-maximizing level.
B) increase from the private-maximizing level.
C) decrease from the private-maximizing level.
D) either increase or decrease from the private-maximizing level, depending on how much private marginal cost exceeds private marginal benefit.

Suppose the Private Marginal Cost of an Activity Exceeds Its