If someone produced too much of a good,this would suggest that:
A) rational choice cannot be applied to many economic decisions.
B) the good was produced past the point where its marginal cost exceeded its marginal benefit.
C) certain goods and services such as education and health care are inherently desirable and should be produced regardless of costs and benefits.
D) the good was produced to the point where its marginal benefit exceeded its marginal cost.

Question

Quizplus · Accepted Answer

If someone produced too much of a good, it means that the production continued even after the marginal cost (the additional cost of producing one more unit) exceeded the marginal benefit (the additional benefit of producing one more unit), which is the case described in option B. Therefore, the best choice is B. Option A is incorrect because rational choice can still be applied even if a mistake was made in the production process. Option C is incorrect because producing goods regardless of costs and benefits may lead to inefficiencies and waste. Option D is incorrect because it describes a situation where production is optimal and not excessive.

If Someone Produced Too Much of a Good,this Would Suggest