Marginal cost equals marginal utility in a well-running society, so they are essentially the same thing.

Question

Quizplus · Accepted Answer

Marginal cost and marginal utility are not the same thing in a well-running society. Marginal cost refers to the additional cost of producing one more unit of a good or service, while marginal utility refers to the additional satisfaction or benefit gained from consuming one more unit of a good or service. While they may intersect at points of equilibrium in market transactions, they are not equivalent concepts.

Marginal Cost Equals Marginal Utility in a Well-Running Society, So