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The graph below represents the marginal costs (MC) and marginal benefits (MB) of microwaves.
Jane Schaefer. Created for Albert.io. Copyright 2016. All rights reserved.
If the the quantity currently being produced is $Q1$, which of the following is true?
Too many microwaves are being produced.
The efficient quantity is being produced.
Resources are being underallocated to microwaves.
The marginal cost of producing microwaves is greater than the marginal benefit.
Society would prefer additional quantities of other goods more than additional microwaves.