If the Marginal Benefit Received from a Good Is Equal

question 35

Multiple Choice

If the marginal benefit received from a good is equal to the marginal opportunity 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) the market is producing too much of the good.
• D) the market is producing an efficient quantity.

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Definitions:

Personal Judgments

Opinions or decisions formed by individuals based on personal feelings, tastes, or opinions, often without external input or influence.

Certainty

The state of being confident and free from doubt about something, often implying a high degree of belief in the accuracy or truth of an outcome or fact.

Fully Informed

Being fully informed means having all the necessary and relevant information or knowledge about a particular subject or situation before making decisions.

Objective Probability

A measure of the likelihood of an event occurring, based on factual data and statistical analysis rather than personal judgment.