Suppose That the Marginal Benefits of Giving a Gift Are

Multiple Choice

Suppose that the marginal benefits of giving a gift are greater than the marginal costs of giving a gift. Is the efficient number of gifts being given? If not, what should the gift giver do to move toward the efficient number of gifts being given.

A) Yes, the efficient number of gifts is being given since the marginal benefit of gift giving is greater than the marginal cost of gift giving.
B) No, the efficient number of gifts is not being given.The gift giver should increase the number of gifts given to move toward efficiency.
C) No, the efficient number of gifts is not being given.The gift giver should decrease the number of gifts given to move toward efficiency.
D) No, the efficient number of gifts is not being given.However, it is not possible to determine whether the gift giver should increase or decrease gift giving to move toward efficiency.