Answered

If the marginal benefit of a good is less than its marginal cost, then the nation should:
Produce more of that good
Maintain the current level of production of that good
Reduce the marginal benefit of that good
Reduce the production of that good



Answer :

GinnyAnswer

Final answer:

The marginal decision rule guides optimal production and consumption levels based on comparing marginal benefits and marginal costs.


Explanation:

The marginal decision rule in economics states that if the marginal benefit of an activity exceeds its marginal cost, then the quantity of that activity should be increased. Conversely, if the marginal benefit is less than the marginal cost, the quantity should be reduced to maximize net benefits. This rule helps determine the optimal level of production or consumption based on the comparative analysis of costs and benefits.


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