If the marginal social benefit received from a good is greater than the marginal social cost of production:
A)an increase in production will improve society's well-being.
B)a decrease in production will improve society's well-being.
C)no change in production can improve society's well-being.
D)the market is producing too much of the good.

Question

Quizplus · Accepted Answer

If the marginal social benefit received from a good is greater than the marginal social cost of production, it means that society values the additional production more than the cost of production. Therefore, an increase in production will lead to greater benefits for society and improve its well-being.

If the Marginal Social Benefit Received from a Good Is