In the figure above,when 4,000 pizzas are produced,the marginal benefit of a pizza ________ its marginal cost,which means ________ pizza is being produced.
A) exceeds; too little
B) exceeds; too much
C) is below; too much
D) is below; too little
E) equals ; the efficient quantity of

Question

Quizplus · Accepted Answer

When marginal benefit exceeds marginal cost, too much of a good is being produced. When marginal benefit is below marginal cost, too little of a good is being produced. When marginal benefit equals marginal cost, the efficient quantity of a good is being produced.

In the Figure Above,when 4,000 Pizzas Are Produced,the Marginal Benefit