If the marginal benefits of the output from resources devoted to the production of a product are greater than the marginal costs,then there has been an overallocation of resources to the production of that product.

Question

Quizplus · Accepted Answer

If the marginal benefits of the output from resources devoted to the production of a product are greater than the marginal costs, it implies that the benefits outweigh the costs, and therefore resources have been allocated efficiently. An overallocation of resources would occur if the marginal costs exceeded the marginal benefits.

If the Marginal Benefits of the Output from Resources Devoted