Multiple Choice
If Social Marginal Cost (SMC) > Price (P) = Buyer's Private Marginal Benefit (MB) = Seller's Private Marginal Cost (MC) = Social Marginal Benefit (SMB) , it implies that:
A) a commodity is oversupplied.
B) there is an excess demand for a commodity.
C) the socially optimal amount of a good is supplied.
D) firms are not maximizing profits.
Correct Answer:
Verified
Correct Answer:
Verified
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