Respuesta :
When the marginal utility of a slice of pizza exceeds the marginal cost, more slices of pizza should be produced.
When the marginal benefit exceeds the marginal cost, what happens?
- If the marginal cost exceeds the marginal benefit, increasing the quantity will result in more effective resource usage.
- Producers optimise profit by increasing output until their marginal cost matches their marginal gain, which is the market price.
- The $1.50 price represents the marginal cost to society of making another pound of tomatoes available.
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