If Social Marginal Cost (SMC) > Price (P) = Buyer's Private Marginal Benefit (MB) = Seller's Private Marginal Cost (MC) = Social Marginal Benefit (SMB), it implies that
A. firms are not maximizing profits.
B. the product is oversupplied.
C. there is an excess demand for the product.
D. the socially optimal amount of the product is supplied.
Answer: B
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