If the Marginal Benefit Received from a Good Is Greater

question 75

Multiple Choice

If the marginal benefit received from a good is greater than the marginal cost of production, then:

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

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Definitions:

Genus

In biology, a rank used in the classification of organisms, grouping together species that share common characteristics; in logic, a general class that encompasses specific instances.

Differentia

The characteristic or set of characteristics that distinguishes one species from another within a genus.

Genus

In biology and taxonomy, a rank used in the classification of organisms, grouping together species that share common characteristics.

Abstraction

The process of reducing complexity by focusing on the main aspects while ignoring irrelevant details.