Whenever consumers are willing to pay more for an item than it costs to produce it,it is efficient to expand output.

Question

Quizplus · Accepted Answer

If consumers are willing to pay more for an item than it costs to produce it, it suggests a high demand and a market opportunity for the producer. By expanding output, the producer can capitalize on this opportunity and increase profits. Therefore, it is efficient to expand output in this scenario.

Whenever Consumers Are Willing to Pay More for an Item