If the Marginal Benefit Received from a Good Is Equal

question 174

Multiple Choice

If the marginal benefit received from a good is equal to the marginal cost of production, then:

• A) society's well-being cannot be improved by changing production.
• B) society's well-being can be improved if production decreases.
• C) society's well-being can be improved if production increases.
• D) the market is producing too much of the good.

---

Definitions:

Cost Curves

Graphical representations used in economics to show the cost of producing a certain number of goods, highlighting how costs change with different levels of output.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale.

Average Cost Curve

A graphical representation that illustrates the cost per unit of output at different levels of production.

Long-run

A period in economics where all factors of production can be varied, and there are no fixed inputs, allowing full adjustment to changes.