Question

SEU Micro Spring 2019 60811 Quiz: ASSESS Chapter 2 Quiz This Question: 1 pt An economy produces protein shakes. If more than the efficient quantity of protein shakes is produced A, marginal benefit exceeds marginal cost O B. marginal cost equals marginal benefit O C. marginal cost exceeds marginal benefit OD. it is not possible to be producing at a point on the PPP Click to select your answer ve for Later

Answer 1

If more than the efficient quantity of protien shake is produced

Then the marginal cost exceeds marginal benefit.

Here, supply is greater than the equilibrium thus, the marginal cost would be greater than Marginal benefit.

Option C.

If supply is less then Marginal benefit is greater than Marginal cost.

If supply = demand then Marginal benefit = marginal cost.

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