-Marginal benefit is greater than marginal cost, and total benefit is greater than total cost at:
A) 2 units of Good X consumed.
B) 6 units of Good X consumed.
C) 8 units of Good X consumed.
D) anywhere from 1 through 9 units of Good X consumed.

Question

-Marginal benefit is greater than marginal cost, and total benefit is greater than total cost at:
A) 2 units of Good X consumed. 
B) 6 units of Good X consumed. 
C) 8 units of Good X consumed. 
D) anywhere from 1 through 9 units of Good X consumed.

Quizplus · Accepted Answer

When marginal benefit is greater than marginal cost, it indicates that the additional benefit of consuming one more unit exceeds the additional cost, which is typically optimal for consumption. Total benefit being greater than total cost suggests overall profitability. At 2 units, these conditions are met.

-Marginal Benefit Is Greater Than Marginal Cost, and Total Benefit