The rational rule for markets is to produce:
A)the output level with minimum average cost and buy the quantity with maximum benefit.
B)more if the unit's marginal benefit exceeds its marginal cost.
C)at the output where efficient quantity equals benefit.
D)less if marginal benefit exceeds marginal cost.

Question

Quizplus · Accepted Answer

The rational rule for markets is to produce more if the unit's marginal benefit exceeds its marginal cost. This means that the benefit received from producing an additional unit should be greater than the cost of producing that unit. This ensures that resources are being used efficiently and that the maximum benefit is being obtained from production. Therefore, option B is the best choice.

The Rational Rule for Markets Is to Produce