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Please help me in answering and explaining this question. thanks much.

The underallocation of resources by society to the production of a product means that the
(a) marginal benefit is greater than the marginal cost
(b) marginal benefit is less than the marginal cost
(c) opportunity cost of production is rising
(d) consumption of the porduct is falling

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关键词：consumption Opportunity production explaining ALLOCATION answering resources question benefit falling

(B) 吧。 when there are externalities, the marginal cost is bigger than the marginal benefit. Then there will be underallocation of resources.

blessings 发表于 2011-10-2 02:19
(B) 吧。 when there are externalities, the marginal cost is bigger than the marginal benefit. Then t ...

谢谢你的热心回答，不过答案不是B。。。。。。

blessings 发表于 2011-10-2 02:19
(B) 吧。 when there are externalities, the marginal cost is bigger than the marginal benefit. Then t ...

如果不是B的话，那就是A啦。不过what's the rationale there? Can you tell me?
If the marginal benefit is bigger than the marginal cost, that indicates underallocation of resources? Because this kind of resources should be allocated more than before since its MB is bigger than MC?

C,资源不平均导致机会成本增加。这样的社会没有边际成本，只会出现垄断或者有消费没消费品2极端。我认为是C。

俺来看帖了，看完顶一个哦！