Suppose the Economy Is Producing at a Point on Its

Multiple Choice

Suppose the economy is producing at a point on its production possibilities curve where the marginal benefit of an additional unit of housing is $70,000 while the marginal cost of an additional unit of housing is $78,000. In this instance:

A) the production of housing should decrease.
B) the production of housing should increase.
C) the production of housing should not be changed.
D) the production of housing should be increased only if there are homeless people.