-If, in this figure, ten units of Good A are consumed, then at this point marginal cost:
A) equals marginal benefit.
B) is less than marginal benefit.
C) is greater than marginal benefit.
D) may be equal to, less than, or greater than marginal benefit.

Question

-If, in this figure, ten units of Good A are consumed, then at this point marginal cost:
A) equals marginal benefit. 
B) is less than marginal benefit. 
C) is greater than marginal benefit. 
D) may be equal to, less than, or greater than marginal benefit.

Quizplus · Accepted Answer

At the point where ten units of Good A are consumed, if marginal cost is greater than marginal benefit, it indicates that the cost of producing an additional unit exceeds the benefit derived from it, suggesting overconsumption.

-If, in This Figure, Ten Units of Good a Are