If an economist states that not enough of a good is being produced,she usually means that
A) not everyone can afford the good.
B) price exceeds marginal cost.
C) consumer surplus equals zero.
D) at equilibrium, some people who still wish to sell the good cannot find a buyer.

Question

Quizplus · Accepted Answer

If the price is higher than the marginal cost, it means that the producer is not producing efficiently and is missing out on potential profit. Therefore, if not enough of a good is being produced, it would suggest that the price is too high and needs to be lowered to increase production to meet demand.

If an Economist States That Not Enough of a Good