If marginal benefit is greater than marginal cost at the current quantity, there are more mutually beneficial trades that can happen.

Question

Quizplus · Accepted Answer

If marginal benefit is greater than marginal cost, it means that the benefits of producing or consuming one additional unit outweigh the costs. This suggests that there is potential for more trades to occur that would benefit both parties, as each party would receive a greater benefit than the cost incurred. Therefore, there are more mutually beneficial trades that can happen.

If Marginal Benefit Is Greater Than Marginal Cost at the Current