If marginal benefits exceed marginal costs, it is profitable to:
A)increase Q.
B)decrease Q.
C)stay at that level of Q.
D)all of the statements associated with this question are correct.

Question

Quizplus · Accepted Answer

When marginal benefits exceed marginal costs, it means that consumers are willing to pay more for a good or service than it costs to produce it. This indicates that there is a profit to be made by increasing the quantity of production, as the additional revenue from selling the extra output will exceed the additional costs incurred. Therefore, it is profitable to increase Q in order to maximize profits.

If Marginal Benefits Exceed Marginal Costs, It Is Profitable To