99. Whenever MB = MC, the decisionmaker should do _______ of the activity. A) le
ID: 1251624 • Letter: 9
Question
99. Whenever MB = MC, the decisionmaker should do _______ of the activity.A) less
B) the same amount
C) more
D) none
100. If the marginal benefit received from a good is equal to the marginal cost of production, then:
A) society's well-being cannot be improved by changing production.
B) society's well-being can be improved if production decreases.
C) society's well-being can be improved if production increases.
D) the market is producing too much of the good.
101. If the marginal benefit received from a good is less than the marginal cost of production, then:
A) society's well-being can be improved if production increases.
B) society's well-being can be improved if production decreases.
C) society's well-being cannot be improved by changing production.
D) the market is producing too little of the good.
102. If the marginal benefit received from a good is greater than the marginal cost of production, then:
A) society's well-being can be improved if production increases.
B) society's well-being can be improved if production decreases.
C) society's well-being cannot be improved by changing production.
D) the market is producing too much of the good.
Explanation / Answer
99. you are optimizing your profit (making as much money as you can) when mb=mc. if you make anymore or any less you will either be losing money on each additional product produced or should produce more since you are gaining money with each additional product. and as for choice d, why would you produce nothing when you can be making money? 100. refer to the first sentence i wrote. what benefit would there be if you changed something when you are already making as much as possible. 101. if you mc is greater than mb then you are losing money because you are producing more than what people are willing to buy. 102. if mb is greater than mc, then you are making a profit but not your potential maximum profit. if you keep producing more then eventually you will reach the point where mc=mb which is what you want
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