Asked by
Esther Rengifo
on Oct 09, 2024
Verified
If the output of product X is such that marginal benefit equals marginal cost:
A) the correct amount of resources is being allocated to X's production.
B) the value of producing X exceeds the value of producing alternative products with the available resources.
C) there can be a net gain to society by allocating either more or less resources to producing X.
D) resources are overallocated to the production of X.
Marginal Benefit
The additional satisfaction or utility that an individual gains from consuming one more unit of a good or service.
Marginal Cost
The additional expenditure involved in producing one additional unit of a good or service.
Product X
A placeholder name typically used in economics and marketing to represent a generic product under consideration.
- Familiarize oneself with the concepts of marginal benefits and marginal costs, and their effect on pinpointing the optimal level of production and the allocation of resources.
- Comprehend the concept of optimal allocation of resources and how it is achieved.
Verified Answer
SC
Learning Objectives
- Familiarize oneself with the concepts of marginal benefits and marginal costs, and their effect on pinpointing the optimal level of production and the allocation of resources.
- Comprehend the concept of optimal allocation of resources and how it is achieved.