If the cost were greater than the marginal benefit of a good:
A) consumers could increase their utility by buying more.
B) consumers could increase their utility by buying less.
C) producers should increase production.
D) social net benefit would be maximized.

Question

Quizplus · Accepted Answer

If the cost of a good is greater than its marginal benefit, then consumers would be better off buying less of it. This is because the marginal cost outweighs the marginal benefit, and purchasing more would result in a net loss of utility. Choosing to consume less would allow consumers to optimize their utility by reallocating their resources to goods or services with greater marginal benefits.

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