If the marginal benefit were greater than the cost of a good:
A)consumers could increase their utility by buying more.
B)consumers could increase their utility by buying less.
C)producers should decrease production.
D)None of these is true.

Question

Quizplus · Accepted Answer

If the marginal benefit of a good is greater than its cost, then consumers can increase their overall satisfaction or utility by buying more of the good. This is because the additional benefit received from each unit of the good is greater than the additional cost incurred to acquire it.

If the Marginal Benefit Were Greater Than the Cost of a Good