Overproduction results in
A) external costs.
B) external benefits.
C) deadweight loss.
D) super-efficiency.
E) the marginal benefit of the last unit produced being larger than the marginal cost.

Question

Quizplus · Accepted Answer

Overproduction leads to deadweight loss, which is the loss of social and economic efficiency that occurs when the quantity of goods and services produced exceeds the socially optimal level. This results in resources being wasted and the marginal cost of producing one more unit outweighing the marginal benefit to society.

Overproduction Results in