If the cost were greater than the marginal benefit of a good:
A)consumers could increase their utility by buying more.
B)consumers could increase their utility by buying less.
C)producers should increase production.
D)None of these is true.

Question

Quizplus · Accepted Answer

If the cost of a good is greater than the marginal benefit, it means that the additional satisfaction gained from consuming one more unit is less than the cost incurred to produce that unit. In this case, consumers would increase their overall utility by buying less of the good, as they would be better off spending their money on other goods or saving it for future purchases.

If the Cost Were Greater Than the Marginal Benefit of a Good