If an economy is currently producing at the point where marginal benefit and marginal cost are equal, we know that:

Question

Quizplus · Accepted Answer

When marginal benefit and marginal cost are equal, it means that the economy has reached the optimal level of production, where the allocation of resources is efficient, and there is no waste. Therefore, it can be concluded that the best combination of goods and services is being produced. The other options are incorrect because there is no indication of technology being an issue, no need for a change in resource allocation, and unemployment is not mentioned.

If an Economy Is Currently Producing at the Point Where