Question

An economy produces protein shakes.

If less than the efficient quantity of protein shakes is produced:
A. it is not possible to be producing at a point on the PPF
B. marginal cost equals marginal benefit
C. marginal benefit exceeds marginal cost
D. marginal cost exceeds marginal benefit

Answer 1

if less than the efficient quantity of protein shakes is produced , :
D. marginal cost exceeds marginal benefit
Marginal cost will keep increasing until it passed the equivalent before it finally started to diminish

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