If the marginal benefits are greater than the marginal cost of an activity, then society should allocate fewer resources to this activity.

Question

Quizplus · Accepted Answer

If the marginal benefits are greater than the marginal costs, it indicates that the activity is generating more value than it consumes in resources, suggesting that society could benefit from allocating more resources to this activity until marginal costs equal marginal benefits.

If the Marginal Benefits Are Greater Than the Marginal Cost