If the marginal social benefit received from a good is equal to the marginal social cost of production:
A)an increase in production will improve society's well-being.
B)a decrease in production will improve society's well-being.
C)no change in production can improve society's well-being.
D)the market is producing too much of the good.

Question

Quizplus · Accepted Answer

When the marginal social benefit received from a good is equal to the marginal social cost of production, it indicates that the society is achieving allocative efficiency. Any change in production at this point will not improve social welfare and therefore, no change in production can improve society's well-being.

If the Marginal Social Benefit Received from a Good Is