A Quantity Less Than the Equilibrium Quantity in a Competitive

question 102

Multiple Choice

A quantity less than the equilibrium quantity in a competitive market is inefficient because

• A) the marginal benefit of another unit is greater than its marginal cost.
• B) too much of the good is being produced.
• C) the marginal cost of another unit is greater than its marginal benefit.
• D) the marginal benefit of another unit is not equal to zero.
• E) the marginal benefit is not maximized.