If the Difference Between the Marginal Benefit and the Marginal

question 101

Multiple Choice

If the difference between the marginal benefit and the marginal cost of a good is as large as possible,

• A) resources are being used with maximum efficiency.
• B) resources would create more value producing other goods and hence the production of this good should be decreased.
• C) more of the good should be produced.
• D) allocative efficiency has been attained.
• E) Both answers A and D are correct.

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Definitions:

Task Variety

Refers to the degree of different activities involved in a job, emphasizing the diversity of tasks and skills required.

Task Assignments

The distribution of specific duties or workloads to individuals or teams within an organization to achieve certain objectives.

Job Involvement

The degree to which an individual is emotionally and psychologically engaged in their job.

Individual

An individual refers to a single human being as distinct from a group, class, or family.