In a functioning market, people will buy a good up to the point where:

Question

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In a functioning market, individuals make purchasing decisions based on the principle of marginal analysis. They will continue to buy additional units of a good as long as the marginal benefit (the additional benefit from consuming one more unit) of the last unit is equal to or greater than the marginal cost (the additional cost to produce or purchase one more unit) of that unit. This equilibrium point ensures that resources are allocated efficiently.

In a Functioning Market, People Will Buy a Good Up