If the marginal benefit received from a good is equal to the marginal cost of production, then:
A) society's well-being cannot be improved by changing production.
B) society's well-being can be improved if production decreases.
C) society's well-being can be improved if production increases.
D) the market is producing too much of the good.

Question

Quizplus · Accepted Answer

When the marginal benefit equals the marginal cost, it indicates an optimal allocation of resources for that good, meaning any change in production would lead to inefficiencies, not improvements in societal well-being.

If the Marginal Benefit Received from a Good Is Equal