If the marginal benefit received from a good is greater than the marginal social cost of production, then:
A)society's well-being can be improved if production increases.
B)society's well-being can be improved if production decreases.
C)society's well-being cannot be improved by changing production.
D)the market is producing too much of the good.

Question

Quizplus · Accepted Answer

If the marginal benefit received from a good is greater than the marginal social cost of production, it means that people value the good more than it costs to produce it. This situation creates a net benefit for society, and production should increase to meet demand and make more people better off. Therefore, society's well-being can be improved if production increases.

If the Marginal Benefit Received from a Good Is Greater