In a functioning market,people will buy a good up to the point where:
A)the marginal benefit of the last unit is equal to the marginal cost of that unit.
B)the marginal benefit of each unit is equal to the marginal cost of each unit.
C)the total benefit of the good is equal to the total cost of the good.
D)they can no longer afford it.

Question

Quizplus · Accepted Answer

In a functioning market, consumers will purchase a good until the marginal benefit (the additional benefit from consuming one more unit) equals the marginal cost (the additional cost of producing one more unit). This is the point of optimal consumption where utility is maximized.

In a Functioning Market,people Will Buy a Good Up to the Point