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.

Analyze the effect of scale on production costs in both the short run and long run.

Distinguish between cost structures of different production levels and their implications for business decisions.

Recognize the relationship between the quantity of inputs and production efficiency.

Understand the significance of the shape of long-run average cost curves.