If the marginal benefit of a good is less than its marginal cost, then the nation should:
A) Produce more of that good
B) Maintain the current level of production of that good
C) Reduce the marginal benefit of that good
D) Reduce the production of that good

Question

Quizplus · Accepted Answer

If the marginal benefit of a good is less than its marginal cost, it means that the society's resources are not being efficiently utilized, and the production of that good is costing more than the value it provides. Therefore, the best choice is to reduce the production of that good to improve the overall efficiency and welfare of the economy.

If the Marginal Benefit of a Good Is Less Than