When the Marginal Benefit of an Output Exceeds the Marginal

question 105

Multiple Choice

When the marginal benefit of an output exceeds the marginal cost,

• A)production of that output should be increased, in order to achieve efficiency.
• B)production of that output should be decreased, in order to achieve efficiency.
• C)increasing the production of that output would increase the deadweight loss.
• D)reducing the production of that output would reduce efficiency losses.

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Definitions:

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Inherent Risks

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