If the marginal cost of treating an illness is zero, then the optimal amount of treatment to receive is the amount:
A)for which the marginal benefit of treatment is zero.
B)that makes the patient is as healthy as possible.
C)for which the average benefit of treatment is zero.
D)for which the total benefit of treatment is zero.

Question

Quizplus · Accepted Answer

When the marginal cost is zero, the optimal amount of treatment is where the marginal benefit is zero, as this is the point where additional treatment provides no additional benefit.

If the Marginal Cost of Treating an Illness Is Zero