If marginal benefit is greater than marginal cost, output is inefficiently high.

a. True

b. False

The answer is a.

It is true that if marginal benefit is less than marginal cost, the output is inefficiently high. Marginal benefit is defined by what a person is ready to give up just having one more unit of a product or goods. On the other hand, marginal cost is defined as the value of what is given up in order to obtain that unit additionally.