When Less Than the Efficient Amount of a Good Is

question 312

Essay

When less than the efficient amount of a good is produced, how does the marginal social benefit of the last unit produced compare to its marginal social cost?

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Definitions:

Undesirable Characteristics

Traits or features that are not wished for or are deemed negative or harmful in a certain context or environment.

Defense Mechanism

Psychological strategies brought into play by individuals, groups, and even nations to cope with reality and to maintain self-image.

Displacement

In psychology, the shifting of negative feelings or desires from the original object to a more acceptable or safer substitute.

Defense Mechanism

A defense mechanism is a psychological strategy unconsciously used to protect a person from anxiety arising from unacceptable thoughts or feelings.