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 and the value of producing alternative products with available resources is the same.
C)there can be no net gain to society by allocating either more or less resources to producing X.
D)all of the above are true.

Question

Quizplus · Accepted Answer

If the output of product X is such that marginal benefit equals marginal cost, it means that the correct amount of resources is being allocated to X's production, and that the value of producing X and the value of producing alternative products with available resources is the same. It also means that there can be no net gain to society by allocating either more or less resources to producing X. Therefore, all of the above choices are true.

If the Output of Product X Is Such That Marginal