At Current Output,the Marginal Social Benefit from Furbys Is Greater

Multiple Choice

At current output,the marginal social benefit from Furbys is greater than marginal social cost.To achieve an efficient allocation,which of the following must occur? (1) Furby output must increase.(2) Furby output must decrease.(3) the marginal social benefit of Furbys will rise.(4) the marginal social cost of Furbys will fall.

A) 1 and 3
B) 1 and 4
C) 2 and 3
D) 2 and 4
E) 1 only