If the Marginal Cost of Producing Steel Exceeds the Marginal

question 146

Multiple Choice

If the marginal cost of producing steel exceeds the marginal utility of using steel, then for economic efficiency,

• A)the price of steel should fall.
• B)society should produce less steel.
• C)the price of goods made with steel should fall.
• D)society should direct resources toward steel production and away from the production of other goods.

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