In the figure above,when 2,000 pizzas are produced,the marginal benefit of a pizza ________ its marginal cost,which means ________ pizza is being produced.
A) exceeds; too little
B) exceeds; too much
C) is below; too much
D) is below; too little
E) equals; the efficient quantity of

Question

Quizplus · Accepted Answer

When the marginal benefit of a product exceeds its marginal cost, it indicates that the value or utility derived from consuming one more unit of the product is greater than the cost of producing that additional unit. This situation suggests that producing more of the product could increase overall welfare, implying that currently, too little of the product is being produced.

In the Figure Above,when 2,000 Pizzas Are Produced,the Marginal Benefit