If the marginal benefit received from a good is less than the marginal cost of production, then:...
Question:
If the marginal benefit received from a good is less than the marginal cost of production, then:
a) society's well-being can be improved if production increases.
b) society's well-being can be improved if production decreases.
c) society's well-being cannot be improved by changing production.
d) the market is producing too little of the good.
Marginal benefit
The maximum amount paid by the consumer for an extra unit of the same commodity is called marginal benefit. The consumer will gain additional satisfaction from that commodity. When there is an increase in consumption of a particular item by a consumer, marginal benefit starts decreasing.
Answer and Explanation: 1
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View this answerThe correct option is b) society's well-being can be improved if production decrease.
Because the excess of marginal cost represents additional...
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Marginal Benefit in Economics: Definition & Example
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Chapter 3 / Lesson 48
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In this lesson, learn what marginal benefits are in economics. Understand the principle of diminishing marginal benefits and find marginal benefit examples.
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