Answer to Question #95088 in Macroeconomics for Timothy Weldon

Question

If 8 million kegs are sold, MB exceeds MC, which means that

Answer 1

If 8 million kegs are sold, MB exceeds MC, which means that the production of 8 million kegs of beer represents an underallocation of resources to beer production. Therefore, society can gain (and resources can be used more efficiently) when more kegs of beer are produced and fewer resources are allocated to alternative uses.