If the difference between the marginal benefit and the marginal cost of a good is as large as possible,
A) more of the good should be produced.
B) allocative efficiency has been attained.
C) resources are being used with maximum efficiency.
D) resources would create more value producing other goods and hence the production of this good should be decreased.
E) Both answers A and D are correct.

Question

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The Answer of If the difference between the marginal benefit and the marginal cost of a good is as large as possible,
A) more of the good should be produced.
B) allocative efficiency has been attained.
C) resources are being used with maximum efficiency.
D) resources would create more value producing other goods and hence the production of this good should be decreased.
E) Both answers A and D are correct.

If the Difference Between the Marginal Benefit and the Marginal