In the figure above,when 6,000 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

According to the graph, at the quantity of 6,000 pizzas, the marginal cost is higher than the marginal benefit, indicating that producing one more pizza will cost more than the benefits gained from it. Therefore, producing 6,000 pizzas is above the efficient quantity and too much pizza is being produced. The correct choice that reflects this scenario is C) is below; too much.

In the Figure Above,when 6,000 Pizzas Are Produced,the Marginal Benefit