because at the quantity produced OA. inefficient; marginal cost exceeds marginal benefit B. efficient; marginal cost exceeds marginal benefit C. efficient; the seller receives the price the buyer pays OD. efficient; marginal benefit exceeds marginal cost O E. inefficient; marginal benefit exceeds marginal cost The tax is
Added by James W.
Step 1
Efficiency occurs when the marginal benefit (MB) equals the marginal cost (MC). This means that the benefit gained from producing one more unit is equal to the cost of producing that additional unit. Show more…
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