Which of the following statements is true regarding net benefits?
A) Net benefit equals total benefit less marginal benefit.
B) Net benefit is maximized at the point where marginal cost equals marginal benefit.
C) Net benefit decreases when marginal benefit is greater than marginal cost.
D) net benefit cannot be negative.

Question

Quizplus · Accepted Answer

Net benefit is maximized at the point where marginal cost equals marginal benefit, according to economic theory. This principle is fundamental in determining the optimal level of production or consumption where the net gain to society (or an individual) is the highest.

Which of the Following Statements Is True Regarding Net Benefits