Assuming no externalities exist, if a good's price is more than its marginal cost, then the benefits consumers derive are ________ than the cost of resources needed to produce it and ________ should be produced.
A) greater; less
B) greater; more
C) less; less
D) less; more

Question

Quizplus · Accepted Answer

When the price of a good is higher than its marginal cost, it indicates that consumers value the good more than it costs to produce additional units, suggesting that increasing production would enhance overall economic welfare.

Assuming No Externalities Exist, If a Good's Price Is More