When Price Exceeds Marginal Cost

Multiple Choice

When price exceeds marginal cost

A) the market structure is perfectly competitive.
B) resources are optimally allocated from society's point of view.
C) too much output is being produced, resulting in losses to businesses.
D) a 1-unit increase in output increases the social value of output by more than the social costs of production.
E) the costs of production are greater than the demand.