If the Marginal Social Cost of Producing a Product Exceeds

question 144

True/False

If the marginal social cost of producing a product exceeds the marginal social benefit, producers will produce less of it.

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Definitions:

Imperfect Competitor

A firm or entity in a market structure that does not meet the criteria of perfect competition, often having some control over price.

Output Price

The price at which goods or services produced by a company are sold in the market.

Productivity

The efficiency at which goods or services are produced, often measured by the output per worker or per hour worked.

Output Per Acre

A measure of agricultural productivity, calculated as the total production of a crop divided by the number of acres used to grow that crop.