If marginal costs of production are greater than marginal benefits of production:

Question

Quizplus · Accepted Answer

If marginal costs of production are greater than marginal benefits of production, it means that producing more of the good is not adding enough value to justify the additional cost. In other words, too much of the good is being produced and resources could be better allocated elsewhere. Therefore, it would be best to decrease production to a level where marginal costs are equal to marginal benefits.

If Marginal Costs of Production Are Greater Than Marginal Benefits