Suppose firms in the wholesale flower market instead produce more than the allocatively efficient quantity, so that marginal cost exceeds price. According to the source, what does this imply?

1. When marginal cost exceeds price, the cost of producing one more flower is higher than what consumers are willing to pay for it. 2. That means the social cost of the extra unit exceeds its social benefit. 3. Since costs outstrip benefits at the margin, the source concludes it makes sense to produce a lower quantity of such goods. 4. This is a signal to cut back at the margin, not evidence that firms must exit the market entirely. _Source: OpenStax Principles of Microeconomics for AP Courses (CC BY 4.0), Ch 8 "Perfect Competition", section 8.4 | Efficiency in Perfectly Competitive Markets_