If the Marginal Benefit of Consuming Another Unit of a Good

question 34

Multiple Choice

If the marginal benefit of consuming another unit of a good is positive, then to reach the allocatively efficient level of output more of the good should be produced and consumed

• A) if the total benefit of the good is greater than its total cost.
• B) no matter what..
• C) as long as the consumer can afford to pay for it.
• D) if the marginal benefit of the good is greater than its marginal cost.