If the marginal social benefit of consuming a product exceeds the marginal social cost,social welfare _____
A)increases when output decreases.
B)decreases when output increases.
C)remains unchanged when output increases.
D)increases when output increases.
E)is at its maximum.

Question

Quizplus · Accepted Answer

If the marginal social benefit of consuming a product exceeds the marginal social cost, then producing and consuming more of the product will lead to an increase in social welfare. Therefore, the best choice is D, which states that social welfare increases when output increases.

If the Marginal Social Benefit of Consuming a Product Exceeds