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

Question

Quizplus · Accepted Answer

If the marginal benefit received from a good is greater than the marginal cost of production, it means that each additional unit produced generates more benefits than the costs incurred in producing it. As a result, society's well-being can be improved if production increases because the benefits gained by producing more of the good exceed the costs of doing so.

If the Marginal Benefit Received from a Good Is Greater