The output of blu ray players should be:
A)reduced if marginal benefits exceed marginal costs.
B)reduced if marginal costs exceed marginal benefits.
C)increased if marginal costs exceed marginal benefits.
D)reduced to zero if their unit costs exceed the unit costs of alternative products.

Question

Quizplus · Accepted Answer

The output of blu ray players should be reduced if marginal costs exceed marginal benefits. This means that if the cost of producing and selling the blu ray players is greater than the benefits that consumers receive from purchasing and using them, it is not profitable for the company to continue producing them at the same rate. Therefore, the output should be reduced to a level where the marginal costs and benefits are balanced.

The Output of Blu Ray Players Should Be