When an economist says that there is "too much of a good thing," the economist is suggesting that:
A) scarcity is not a problem.
B) wants are limited.
C) the marginal cost of the thing is less than the marginal benefit.
D) the marginal benefit of the thing is less than the marginal cost.

Question

Quizplus · Accepted Answer

When an economist says that there is "too much of a good thing," it means that the marginal benefit of the thing is less than the marginal cost. This indicates that the society is overproducing the good as the cost of producing additional units exceeds the benefit that individuals receive from consuming it.

When an Economist Says That There Is "Too Much of a Good