To maximize economic surplus, keep increasing output as long as
A)total benefits equal total costs.
B)total benefits exceed total costs.
C)marginal benefits equal marginal costs.
D)marginal benefits exceed marginal costs.

Question

Quizplus · Accepted Answer

To maximize economic surplus, marginal benefits should exceed marginal costs. This means that producing one more unit of output would generate more additional benefit than the additional cost incurred, resulting in a net gain in surplus. If marginal benefits are equal to marginal costs, then the current level of output is already maximizing economic surplus, and any further increase or decrease in output would decrease surplus.

To Maximize Economic Surplus, Keep Increasing Output as Long as