A society is producing an efficient amount of soda if the cost to society of producing the last soda (MCS) is equal to the benefit to the society of that soda (MBS). If this weren't true the society could be made better off. For example, if MCS < MBS too little is being produced. The added benefit of producing more soda outweighs the added cost, so society would be better off if more were produced. If MCS > MBS production should be reduced because the cost savings would outweigh the benefit reduction.
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