In a market where the marginal benefit of a good is greater than its marginal cost, what should the producer do to achieve social optimality?

When the marginal benefit of a good is greater than its marginal cost, it means that the value people get from the good is higher than what it costs to produce it. In this situation, the producer should increase production of that good because doing so will create more value for society. For example, if a bakery finds that each loaf of bread it sells brings in more money than it costs to make, it should bake more loaves. By producing more, the bakery can satisfy more customers and contribute positively to the market. This way, the producer helps achieve social optimality, where resources are used efficiently to maximize overall happiness and benefit.