Use the following to answer question(s): Markets and Efficiency

-(Exhibit: Markets and Efficiency) A producer will produce additional apples:
A) as long as marginal benefit is less than marginal cost.
B) as long as marginal benefit exceeds marginal cost.
C) if marginal cost is decreasing and price is the same.
D) if price does not cover costs.

Question

Use the following to answer question(s): Markets and Efficiency
 
-(Exhibit: Markets and Efficiency) A producer will produce additional apples:
A) as long as marginal benefit is less than marginal cost. 
B) as long as marginal benefit exceeds marginal cost. 
C) if marginal cost is decreasing and price is the same. 
D) if price does not cover costs.

Quizplus · Accepted Answer

According to the exhibit, the producer will only produce additional apples as long as marginal benefit exceeds marginal cost. This means that the producer will only continue to add to their production if the revenue gained from selling the additional apples is greater than the cost of producing them.

Use the Following to Answer Question(s): Markets and Efficiency