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A good is said to be overproduced in an economy if the marginal benefit derived from the consumption of the good is more than the

A good is said to be overproduced in an economy if

  • the marginal benefit derived from the consumption of the good is more than the price.
  • the social marginal cost exceeds the social marginal benefit.
  • the production of the good generates a positive externality.
  • the marginal cost of producing the good is less than its price.

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