Question

A production quota is​ ______ because at the quantity produced​ ______.

Answer 1

I believe the answer is : inefficient ; marginal social benefit exceeds marginal social cost.

For example, let's say that the product is foods. Imposing a product quota on food would limit the amount of food that produced by society. For most people, having too much food is still considered to be better than having too little, which is why the act of imposing product quota is considered to be inefficient.

Answer 2

A production quota is inefficient because at the quantity produced marginal social benefit exceeds marginal social cost.
This means that there cannot be enough production as the cost is way lower than the benefit it brings to society.