Suppose That at Current Production Levels, Marginal Social Benefit Is

Multiple Choice

Suppose that at current production levels, marginal social benefit is $75 while marginal cost is $80. We know that:

A) the efficient level of output is being produced.
B) the level of output should be decreased in order to improve efficiency.
C) the level of output should be increased in order to improve efficiency.
D) output should be redistributed so those with lower income will be able to consume more.