When evaluating how much to produce, increase the quantity produced if the marginal benefit of an additional item is _____ the marginal cost of the additional item.
A)greater than or equal to
B)equal to
C)less than or equal to
D)less than

Question

Quizplus · Accepted Answer

When the marginal benefit of producing an additional item is greater than or equal to the marginal cost, it means that the additional unit produced generates enough revenue to cover the costs of producing it and even provides extra profit. Therefore, it makes sense to increase the quantity produced until the marginal benefit becomes equal to the marginal cost.

When Evaluating How Much to Produce, Increase the Quantity Produced