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When the Marginal Benefit of an Output Exceeds the Marginal

Question 128

Multiple Choice

When the marginal benefit of an output exceeds the marginal cost,


A) production of that output should be increased, in order to achieve efficiency.
B) production of that output should be decreased, in order to achieve efficiency.
C) increasing the production of that output would increase the deadweight loss.
D) reducing the production of that output would reduce efficiency losses.

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