In the diagram, a firm raises its output from OY to OZ. Which statement correctly describes the impact on economic efficiency?
- AIt will increase because a greater quantity will be produced and higher total revenue will be earned.
- BIt will increase because the value that consumers place on the product comes closer to the cost of producing the last unit.
- CIt will decline because both average and marginal revenue will fall.
- DIt will decline because both total and marginal cost will rise.