Overproduction of a good means that
A)deadweight loss has been eliminated.
B)the sum of consumer surplus and producer surplus is greater than the sum for an efficient allocation.
C)marginal social cost exceeds marginal social benefit.
D)marginal social benefit exceeds marginal social cost.
E)this is a public good.

Question

Quizplus · Accepted Answer

Overproduction occurs when the marginal social cost of producing a good exceeds the marginal social benefit, leading to inefficiency and deadweight loss.

Overproduction of a Good Means That