If the Marginal Utility of a Gallon of Milk to Consumers

Multiple Choice

If the marginal utility of a gallon of milk to consumers is $2.50 and the MC of producing the gallon of milk is $1.50, then

A) the value of the resources used up in producing one more gallon of milk would be $1 less than the money value of the additional gallon to consumers.
B) society could be made better off by expanding the output of milk.
C) resources are not being used most efficiently.
D) All of the above are true.