When making a profit-maximizing "how much" decision, if the price of a good or activity is greater than the marginal cost of that good or activity, then the individual can be made better off by:

Question

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When the price of a good or activity is greater than the marginal cost, it means that the individual can earn a profit by producing or consuming more of it. Therefore, the individual should increase the quantity as long as the price of one more unit exceeds the marginal cost. This will lead to a higher profit and overall better off for the individual. Option A, decreasing the quantity, would lead to a lower profit. Option B, increasing spending until the price of one more unit is less than the marginal cost, may not be feasible or optimal. Option D, changing the way marginal values are computed, is not necessary in this situation.

When Making a Profit-Maximizing "How Much" Decision, If the Price