When the marginal benefit of an output exceeds the marginal cost

A. production of that output should be increased, in order to maximize economic surplus.
B. increasing the production of that output would increase the missing surplus.
C. reducing the production of that output would reduce the missing surplus.
D. production of that output should be decreased, in order to maximize economic surplus.

Answer: A

Economics

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The demand for a product is relatively more elastic:

a. ?When it has few substitutes ?b. In the long-run c. ?When the money spent on the product represents a small portion of a typical buyer's budget d. ?When the product is broadly defined

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The marginal propensity to consume (MPC) refers to the proportion of disposable income that is spent on consumption

Indicate whether the statement is true or false

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