Which of the following is the incorrect statement?
A) The marginal benefits curve is the slope of the total benefits curve.
B) dB(Q)/dQ = MB.
C) The slope of the net benefit curve is vertical where MB = MC.
D) The vertical difference between the total benefit curve and the total cost curve is maximized at the optimal level of Q.

Question

Quizplus · Accepted Answer

The slope of the net benefit curve is horizontal where MB = MC. When MB = MC, the net benefit is maximized, which means that any increase or decrease in Q will result in a decrease in net benefit. Therefore, the slope of the net benefit curve is horizontal at the optimal level of Q.

Which of the Following Is the Incorrect Statement