If the marginal benefit received from a good is greater than the marginal opportunity 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 opportunity cost of production, it means that each additional unit of the good produced provides more value to society than the resources required to produce that unit. This suggests that society's well-being can be improved if more of the good is produced, which is why choice A is the correct answer.

If the Marginal Benefit Received from a Good Is Greater