Multiple Choice
If Social Marginal Benefit (SMB) > Price (P) = Buyer's Private Marginal Benefit (MB) = Seller's Private Marginal Cost (MC) = Social Marginal Cost (SMC) , it implies that:
A) too much is supplied.
B) not enough of a good is being demanded.
C) the socially optimal amount is supplied.
D) the buyers are not maximizing utility.
Correct Answer:
Verified
Correct Answer:
Verified
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