The Rational Rule for Society is that society should produce another unit of a good if:

Question

Quizplus · Accepted Answer

The rational rule for society is to produce another unit of a good if the marginal social benefit (MSB) exceeds the marginal social cost (MSC). This is because the MSB represents the additional benefit received by society as a whole from producing one more unit, while the MSC represents the additional cost incurred by society as a whole from producing one more unit. If MSB > MSC, then society will benefit from producing another unit of the good since the benefits will outweigh the costs.

The Rational Rule for Society Is That Society Should Produce