When the Marginal Benefit of an Output Exceeds the Marginal

question 122

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

---

Definitions:

CCK

Cholecystokinin, a hormone that stimulates the digestion of fats and proteins by promoting the release of digestive enzymes and bile from the pancreas and gallbladder.

Submucosa

A layer of tissue beneath the mucosa, containing blood vessels, nerves, and connective tissue, providing support and nourishment to the mucosal layer.

Mucosa

The moist tissue layer lining some organs and body cavities, including the nose, mouth, lungs, and digestive tract, that secretes mucus.

Epithelial Tissue

Tissue that lines hollow organs and covers surfaces.