The output of MP3 players should be:
A) reduced if marginal benefits exceed marginal costs.
B) reduced if marginal costs exceed marginal benefits.
C) increased if marginal costs exceed marginal benefits.
D) reduced to zero if their unit costs exceed the unit costs of alternative products.

Question

Quizplus · Accepted Answer

The output of MP3 players should be reduced if marginal costs exceed marginal benefits. This means that if the cost of producing additional MP3 players outweighs the benefits of producing more, then the output should be reduced. This is because producing more would result in a net loss for the company. Therefore, it is important for companies to constantly evaluate the costs and benefits of their production process to ensure that they are optimizing their output.

The Output of MP3 Players Should Be